DHFL defaults on Rs 225 cr commercial paper payments due on 25 June, misses deadline again

Crisis-hit Dewan Housing Finance Limited (DHFL) said it has failed to make Rs 225 crore payment of unsecured commercial paper payment which was due on 25 June. It will be paid over the next few days, the company said.

According to a release filed with the exchanges, “of the Rs 375 crore aggregate amount, Rs 150 crore, that is 40 percent, has been paid on proportionate basis, and the balance amount of Rs 225 crore shall be paid in next couple of days."

A particular asset sale money did not arrive on time leading to cash shortage, said a source to The Economic Times, according to a news report.

Earlier this month, DHFL, after defaulting on its debt obligations, said it is taking all necessary steps to meet repayments within the seven-day grace period and prevent any future default.

DHFL, the third-largest pure-play mortgage lender, has received a default grade by Crisil and ICRA on its Rs 850 crore worth commercial papers (CPs) due to delay in meeting its obligations.

The mortgage lender had defaulted on bond repayments on 4 June.

 DHFL defaults on Rs 225 cr commercial paper payments due on 25 June, misses deadline again

Representational image. Reuters.

The company said there has been delay in payment of interest on non-convertible debentures issued by the company through public issue.

"The company is taking all necessary steps and shall ensure the payment of the due interest within the cure period of 7 days as prescribed under the respective trust deeds pertaining to the said NCDs," it said in a regulatory filing.

DHFL said it will make necessary disclosures at appropriate time.

On 6 June, domestic agencies ICRA and Crisil had downgraded the company’s rating over the mortgage lender's deteriorating liquidity condition and previous defaults on debt repayment.

DHFL expressed surprise on the rating downgrade on its debt instruments saying it has been making and continues to make substantial efforts in ensuring no defaults on any instruments.

"These actions are unwarranted and the company is seeking clarification on the rationale that predicts DHFL's inability to service pay-outs on the due dates. Such speculative rating rationale is not adequate," the housing finance company said Thursday.

Besides, DHFL has repaid close to Rs 40,000 crore of financial obligations since September 2018, it said.

To ensure adequate liquidity to meet the repayments, DHFL also sold its strategic retail assets including Aadhaar, Avanse and DHFL Pramerica Asset Managers.

--With PTI inputs

Your guide to the latest cricket World Cup stories, analysis, reports, opinions, live updates and scores on https://www.firstpost.com/firstcricket/series/icc-cricket-world-cup-2019.html. Follow us on Twitter and Instagram or like our Facebook page for updates throughout the ongoing event in England and Wales.

Updated Date: Jun 26, 2019 07:27:25 IST