For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

DHFL Shares Spike Nearly 40% On Approval Of Debt Resolution Plan

|

Shares of Dewan Housing Finance Corporation Limited (DHFL) jumped by nearly 40 percent to touch an intraday high of Rs 58.40 apiece on NSE on Tuesday from its previous close of Rs 41.95.

The price jump comes after the mortgage lender said that a Special Committee had approved the resolution plan to its lenders.

DHFL Shares Spike Nearly 40% On Approval Of Debt Resolution Plan
 

In a stock exchange filing, DHFL Ltd informed that the Special Committee held a meeting where it was approved the draft resolution plan that the company had formulated in consultation with the committee and its financial advisors viz, Ernst & Young.

The key aspects of the resolution plan:

  • The company plans to make no principal cuts to any creditors.
  • It will put a moratorium on repayments
  • It will seek funding from banks/National Housing Bank for starting retail funding activity
  • Steps were proposed to address the aligning asset-liability mismatch

DHFL has roughly Rs 1 lakh crore in debt. It was the worst hit mortgage lender in the NBFC (non-banking finance company) crisis which was triggered by defaults made by Infrastructure Leasing & Finance Services (IL&FS). It is now seeking a restructuring plan that will help it come out of its liquidity crunch and restart its business.

Further DHFL confirmed the resignation of on of its joint statutory auditors- Deloitte Haskins & Sells LLP.

"In terms of their aforesaid letter, the reasons cited by Deloitte Haskins & Sells LLP are that in view of the matters stated in the Disclaimer of Opinion in the Financial Statements of the Company for the year ended on 31st March 2019 issued by them and its consequential effect on reporting under the Companies Act, 2013, their firm's policy on client acceptance and continuation does not permit them to continue as statutory auditors of the Company."

"The company is in discussion with leading reputed audit firms for appointment as statutory auditors subject to necessary approvals by the Audit Committee of the Board/Board of Directors and the shareholders," it further said.

Company Search
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more