Financial Hour

DHFL to sell its entire wholesale book to Oaktree

Mumbai based Dewan Housing Finance Corp. Ltd. (DHFL) reportedly signed a nonbinding term sheet with Oaktree Capital which is valid till February 2020. Under the deal, the Dewan Housing is to sell its entire wholesale business worth Rs 35,000 crore.

On the resolution proposed by the DHFL management, including converting part debt into 51% equity, banks have signed the Intercreditor agreement (ICA). This will halve the stake of the Wadhawan family, the promoters, to 20%.

Project loans of the DHFL will amount to Rs 35,078 crore that is being sold to Oaktree and Rs 11,967 crore to the account of Slum Rehabilitation Authority. To receive the fresh credit to the DHFL, the company management is expecting the lenders to quickly complete the debt resolution proposal, which is led by the State Bank of India (SBI).

The vote on the resolution is expected to happen in between November 13-15, when the committee of creditors is meeting. The company is expecting Rs 1,000-1,500 crore from the banks to grow its credit book.

Earlier, DHFL sold assets worth Rs 3,000 crore to Oaktree Capital and another small part to SC Lowy. Vaijinath MG is the CEO of DHFL, who was the General Manager of the State Bank of India before.

The company, in its resolution submitted to exchanges, has assumed a price of Rs 54 per share for the conversion of the part to debt into equity by lenders that would give them a 51% stake in the company. The plan is yet to get approval by the investors and lenders.

The company will them use cash proceeds from loan assets to repay the creditors, as per the repayment plan of DHFL. The company is has proposed to reply to the first category of debt worth around Rs 35,000 through inflows by the company’s retail loans.

Banks have Rs 27,527 crore exposure to the company while bondholders have Rs 41,000 crore. Moreover, NBFCs and banks have signed the proposed resolution.

Share
Tags: Home Loans

Recent Posts

Padma Award 2025: Who Made the Cut This Year?

The Padma Awards 2025 have been officially announced, recognizing the remarkable contributions of individuals across…

2 days ago

India’s Extradition Challenge: 5 Fugitives from Terrorism and Financial Fraud

India is currently engaged in a determined effort to extradite several high-profile fugitives who have…

3 days ago

Sidhant Gupta Discusses Key Takeaways from the 2025 Budget

Let’s dive deeper with Sidhant Gupta, former director of Kwality, and discuss the key highlights…

4 days ago

Tragedy Strikes at Nirvana Laddu Parv in Baghpat: 6 Dead, Several Injured as Makeshift Stage Collapses

Incident Details: A Festive Night Turns to Tragedy On the evening of January 27, 2025,…

5 days ago

Saif Ali Khan’s Home Under Attack: Intruder Targets Jeh’s Room, Reveals House Help

Incident Overview On January 17, 2025, a distressing incident unfolded at the residence of Bollywood…

3 weeks ago

Six Dead, Over 20 Injured in Stampede at Darshan Ticket Counters in Tirupati

Tragedy Strikes as Devotees Jostle for Vaikunta Ekadasi Tickets TIRUPATI: A devastating stampede occurred late…

4 weeks ago