IDBI Asset Management Company (AMC) has moved Bombay High Court against Dewan Housing Finance Corporation (DHFL).
The AMC filed the case last month under the commercial summary suit, which is in pre-admission stage. According to market sources, DHFL is in the process of repaying its debt obligations related to commercial papers (CPs), and bringing down its outstanding CPs to zero.
The fund house’s overall exposure to DHFL stood at Rs 44 crore, according to data from Value Research, at the end of May, before the housing financier missed its interest payment on certain debentures and its credit rating was downgraded to ‘D’ (default grade). The fall in rating led to MFs exposed to DHFL taking 75 per cent write-off on their debt exposures, in line with the regulatory norms.
Further, the firm made partial payment of Rs 150 crore towards its commercial papers (CPs) that matured on June 25. While it couldn’t be ascertained whether IDBI AMC had received the full payments, the data cited above showed that IDBI Ultra Short Term Fund’s exposure to these CPs stood at Rs 18 crore as of May-end. Earlier, DSP MF had also moved court after it didn’t receive full payments related to these CPs.
DHFL is currently going through debt resolution process under the inter-creditor agreement led by banks. E-mail queries sent to IDBI AMC and DHFL didn’t elicit any response at the time of going to press.