Troubled Indian housing finance company Dewan Housing Finance Corp. Ltd. is selling its entire wholesale loan book worth 350.78 billion rupees to global asset manager Oaktree Capital Management LP, The Economic Times reported Oct. 14.
The company inked a nonbinding term sheet with the U.S.-based asset manager for the proposed sale, the newspaper quoted a source close to the development as saying. The agreement is valid until February 2020, according to the report. A Dewan Housing Finance spokesperson declined to comment.
The news report came as Dewan Housing Finance's committee of creditors will meet Nov. 13-15 to vote on the company's resolution proposal, which includes converting part of the debt into 51% equity for creditors to hold at a price of 54 rupees per share. The move will reduce promoter Wadhawan family's stake in the company to 20%. Lenders to the company, led by State Bank of India, have signed the intercreditor agreement and are working on the company's proposal.
As of Oct. 11, US$1 was equivalent to 70.93 Indian rupees.