No haircuts to any creditors: DHFL's resolution plan

Mumbai: Troubled Dewan Housing Finance (DHFL) on Tuesday said none of its creditors will have any principal haircuts as per the draft resolution plan formulated by the company in consultation with its financial advisor Ernst and Young.

The Special Committee for Resolution Plan during its meeting “took on record the draft resolution plan”, DHFL said in a stock exchange filing.

The committee also approved submission of the draft resolution plan to the lenders of the company.

As per the resolution plan, “there will be no principal haircuts to any creditor”.

The other features of the plan include moratorium on repayments, and seeking funding from banks/National Housing Bank (NHB) for starting the retail funding activity.

In another filing, DHFL said one of the joint statutory auditors of the company — Deloitte Haskins & Sells LLP — has tendered resignation as statutory auditor of the company with immediate effect.

The reasons cited by Deloitte “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 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”, DHFL said.

It also added the company was in discussion with leading reputed audit firms for appointment as statutory auditors.

Shares of the DHFL closed at Rs 55.40 apiece on the BSE, up 32.06 per cent.