August 8, 2019 / 12:02 PM / a month ago

DHFL may not repay debt while restructuring talks continue

FILE PHOTO: A bird flies past a signboard of Dewan Housing Finance Corporation Ltd. (DHFL) outside its office on the outskirts of Mumbai, January 31, 2019. REUTERS/Francis Mascarenhas/File Photo

BENGALURU (Reuters) - Dewan Housing Finance Corp Ltd (DHFL), one of India’s so-called shadow banks, on Thursday said it might not be able to fulfil its debt obligations due in the near future while banks review its restructuring plan.

DHFL, one of the largest housing finance companies in India, has roughly 1 trillion rupees of debt and is in the process of seeking lender approval on a restructuring plan designed to help it to ride out a liquidity crunch and restart its lending business.

Earlier this week, the company had said its creditors would not have to take any haircut on principal payments under its resolution plan.

DHFL said in its statement that while banks are considering its resolution plan, it may not be able to make the repayments due in the near future.

The company also said that since September 2018 it has repaid 410 billion rupees ($5.82 billion) to its creditors.

($1 = 70.4300 Indian rupees)

Reporting by Chandini Monnappa in Bengaluru and Nupur Anand in Mumbai. Editing by Jane Merriman

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