Lenders to the troubled Dewan Housing Finance Corporation Ltd (DHFL) have begun work on a potential resolution strategy for the company and have already appointed advisors. They have also initiated talks on the promoter’s binding agreement, which could include a possible reconstitution of the board, and have also discussed restructuring options for the cash-strapped company.

Sources close to the development said the lenders will begin work in earnest once the inter-creditor agreement has been signed later this week.

The issues are understood to have been discussed at the joint lenders’ meetings of DHFL on July 1, when the banks also decided to appoint SBI Capital Markets as the Advisor and Cyril Amarchand Mangaldas as the lender’s legal counsel. They are also likely to appoint a co-advisor who will work along with SBI Capital.

The proposed promoters’ binding agreement, which will be entered with the promoter of the company, will include pledge of shares, personal guarantee of promoters, reconstitution of the board, and appointment of directors and key managerial personnel.

The lenders, including Union Bank, SBI and Bank of Baroda, are working under the RBI’s June 7 circular, wherein they can decide on a resolution plan within a 30-day period.

Bankers are understood to be keen on continuing support through working capital to DHFL and have also discussed other options such as securitisation and a buyout of loans.

Kapil Wadhawan, CMD of DHFL, also briefed the lenders and said discussions are on with some investors for a strategic sale that could bring in ₹7,000-10,000 crore of capital.

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