DHFL readies resolution plan in consultation with Ernst & Young
Mumbai (Maharashtra) [India], Aug 6 (ANI): Dewan Housing Finance Corporation (DHFL) said on Tuesday that the special committee has approved a draft resolution plan which the company formulated in consultation with financial adviser Ernst & Young.
ANI
Aug 06, 2019 14:10 IST
Mumbai (Maharashtra) [India], Aug 6 (ANI): Dewan Housing Finance Corporation (DHFL) said on Tuesday that the special committee has approved a draft resolution plan which the company formulated in consultation with financial adviser Ernst & Young.
In a regulatory filing, the company said that there will be no principal haircuts for any creditor. It said the resolution plan to address asset-liability mismatch entails a moratorium on repayments.
"DHFL is seeking funding from the banks and National Housing Bank (NHB) for starting retail funding activity," said DHFL's Chairman and Managing Director Kapil Wadhawan.
In another development, the debt-laden shadow banking company said one of its auditors -- Deloitte, Haskins & Sells LLP -- has resigned.
In a letter to DHFL, Deloitte said it resigned in view of the matters stated in the shadow bank's financial statements for the year ended March 31, DHFL said in a statement.
DHFL reported a significant deterioration in its financial performance for 2018-19. Its stressed liquidity has negatively affected the company's day-to-day operations and solvency. Since June, DHFL has also defaulted on the repayment of a number of its bond obligations.
DHFL is the fourth-largest Indian housing finance company based on loans outstanding as of March. In fiscal 2019, DHFL reported a negative return on assets of 1.1 per cent versus a positive return of 1.2 per cent the year before. Its shareholders equity or total assets ratio declined to 7.6 per cent as of March from 8.7 per cent a year earlier.
The company declared its March quarter results after months of delay on July 13 and reported a loss of Rs 2,223 crore.
(ANI)
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