DHFL Defaults On Bond Repayments Of Rs 50 Crore Due To IBC Restrictions
Dewan Housing Finance Corp. Ltd. has defaulted on repayments of Rs 50 crore worth of bonds, saying that it isn’t in a position to pay lenders since it is under moratorium since November 2019.
The payment has not been made by the company to the respective investors of the secured non-convertible debentures for a principal amount of Rs 50 crore due on July 3, 2020, DHFL said in a regulatory filing.
The company, which is facing bankruptcy proceedings, has been under moratorium since Nov. 29, 2019, and hence is not in a position to make payment of interest or principal to any lenders, it said. The payments to lenders or NCD holders remain in abeyance and will be subject to the outcome of the corporate insolvency resolution process.
The Reserve Bank of India had on Nov. 20, 2019, superceded the board of DHFL due to various financial irregularities and mismanagement and appointed an administrator for the firm. On Nov. 22, it constituted a three member advisory committee to assist the administrator of the company to discharge his duties.
On Nov. 29, RBI filed an application for initiating CIRP against DHFL under Insovency and Bankruptcy Code. On Dec. 3, the Mumbai bench of the National Company Law Tribunal initiated insolvency proceedings against the company and appointed the administrator as the resolution professional of the non-banking lender.
DHFL is alleged to be involved in various corruption charges and has loan outstanding of more than Rs 97,000 crore. It has been alleged that it siphoned off Rs 31,000 crore out of total bank loans.
DHFL promoters Kapil and Dheeraj Wadhawan, under arrest, are facing probe from key investigating agencies such as the Enfrocement Directorate and the Central Bureau of Investigation. They are in judicial custody since May this year.