Cash-strapped DHFL defaults on repayments of Rs 8.07-cr secured non-convertible debentures

New Delhi: Beleaguered housing finance company DHFL again defaulted on bond repayments to the tune of Rs 8.07 crore on 23 July, according to an exchange filing.

The company on 23 July, 2019 defaulted on '8.84 percent, secured non-convertible debentures (NCD) for 3 years' with a total default amount of Rs 8.07 crore, DHFL said in a regulatory filing on Wednesday.

The total amount of securities issued were of the face value of Rs 6.30 crore.

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In a separate filing, the company said that the National Housing Bank has imposed a fine of Rs 5,000. The fine was imposed as the housing sector regulator found DHFL to be deficient with regard to adherence of the regulations on Approval of Acquisition or Transfer of Control directions of NHB, concerning the change in the directorship of the company, it said.

"The penalty levied by NHB is in the normal course of business of the company and shall have no impact on any business or other activities of the company," DHFL said.

Representational image. Reuters.

The first instance of default in DHFL happened on 4 June, when the company was unable to repay on commercial papers worth Rs 850 crore.

DHFL had said that there has been a delay in payment of interest on non-convertible debentures issued by the company through the public issue and it was taking all necessary steps to repay the debt within 7 days of the cure period, as prescribed under the respective trust deeds with regard to NCDs.

Later on 25 June, the company had reported another default to the tune of 60 percent on Rs 375 crore commercial papers, saying the remaining 40 percent of the payment had been met by the company.

The company which sits on a debt of Rs 90,000 crore has reached an inter-creditor agreement with its lenders and a debt-recast programme is likely to be finalised by the end of this month.

In addition, the company has been selling off its non-core assets to meet financial obligations.

Promoters of mortgage lender are in talks with private equity firms and are expecting to garner $1 billion (about Rs 6,900 crore) by selling nearly 50 percent of their holdings..

The Wadhawan family, the promoters of the company, currently holds close to 40 percent stake in the company.

Private equity firms Lone Star, AION Capital and KKR are in talks with promoters for a strategic stake.

The company is undergoing substantial financial stress since the second half of the last financial year.