Tuesday, April 7, 2020

Cash-strapped DHFL not to make any payment to lenders, bondholders


The Corporate Insolvency Resolution Process (CIRP) was initiated against the debt-ridden company as per the provisions of the Insolvency and Bankruptcy Code, 2016 with effect from December 3, 2019.


Dewan Housing Finance Corporation (DHFL) on Tuesday said it will not make any interest or principal payment to lenders as well as bond holders as the company is under resolution process.

The Corporate Insolvency Resolution Process (CIRP) was initiated against the debt-ridden company as per the provisions of the Insolvency and Bankruptcy Code, 2016 with effect from December 3, 2019.

DHFL said all the rated debt papers of the company are carrying default grade ratings and disclosures on the same have been made to the exchanges.


The creditors of the company were duly informed about commencement of the CIRP and were requested to submit their claims to the company in the prescribed manner as per the provisions of the Code.

The amounts to be received towards the dues by the creditors will be based on a resolution plan to be approved in due course by the NCLT, Mumbai, DHFL said in a regulatory filing.

The non-banking finance company (NBFC) further said that it is under moratorium and dues to lenders and bond holders will remain in abeyance until the CRIP is completed.

No comments:

Post a Comment