INSUBCONTINENT EXCLUSIVE:
NEW DELHI: Debt ridden mortgage lender DHFL floated a draft resolution plan under which it proposes to convert debt into equity, subject to
approval of investors and bankers.
The Wadhawan family, who owns a little over 39 per cent in the company, has been looking at various ways
of coming out of the stress which first came to light late last year following the IL-FS bankruptcy
These include selling stakes in group entities, including in the flagship to the extent of giving up half of their stake.
The company on
September 27 held a meeting to present the Draft Resolution Plan to all its institutional creditors including banks, financial institutions,
mutual funds, insurance companies and other institutional bond holders, and to apprise them of the various steps required to be undertaken
to implement the Resolution Plan, DHFL said in a filing to stock exchanges on Saturday.
Assuming a price of Rs 54 per share for debt
conversion into equity by lenders to acquire 51 per cent in the company, it said.
This proposed Resolution Plan, including all projections,
cash flows, computation of liabilities, etc
are based on reports received from various consultants appointed by the lenders and the company, it said.
The cash flow projections factored
for the proposed Resolution Plan do not take into account any tax impact that may occur, in the hands of the borrowers, it said.
The
repayment or restructuring of terms of public deposits is under discussion with relevant stakeholders and regulators and may be subject to