trending Market Intelligence /marketintelligence/en/news-insights/trending/umkTbsMDzjr5dQUefUZBAg2 content esgSubNav
In This List

Report: Dewan Housing Finance lenders agree on 3-level resolution plan

Podcast

Street Talk Episode 87

Blog

A New Dawn for European Bank M&A Top 5 Trends

Blog

Insight Weekly: US banks' loan growth; record share buybacks; utility M&A outlook

Blog

Banking Essentials Newsletter 2021: December Edition


Report: Dewan Housing Finance lenders agree on 3-level resolution plan

Lenders to Dewan Housing Finance Corp. Ltd. agreed on a three-level resolution plan that involves converting a portion of the India-based company's roughly 800 billion rupees debt into equity, The Economic Times reported, citing two people aware of the matter.

The restructuring plan, which is subject to approval of the Reserve bank of India, also includes conversion of some loans into nonconvertible debentures, according to the Aug. 19 report. The banks are also planning to loan fresh funds to the company, the report added.

A separate report from the Financial Express said the creditors are proposing the removal of Kapil Wadhawa as chairman and managing director, and the reduction of his shares to below 10%. A banker close to the developments told the publication that part of the shares will be pledged to banks, which will take control of the company until a new investor takes over.

Wadhawan Global Capital Pvt. Ltd., a part of the Wadhawan Group, is reportedly selling its loan distribution business to help unit Dewan Housing Finance meet its debt obligations. The troubled mortgage lender owes about 350 billion rupees to banks, including State Bank of India, Bank of Baroda and Union Bank of India, and some 450 billion rupees to bond holders.

Meanwhile, Dewan Housing said in an Aug. 19 release that it defaulted on the resettlement of the principal and interest on nonconvertible debentures and commercial papers worth a total of 15.71 billion rupees.

The default occurred Aug. 16, according the bourse filing.

As of Aug. 19, US$1 was equivalent to 71.53 rupees.