DHFL to sell Rs 35,000 crore wholesale book to Oaktree Capital
Dewan Housing Finance Corp. Ltd (DHFL) has signed a nonbinding term sheet with Oaktree Capital to sell its entire Rs 35,000-crore wholesale book. The agreement is valid until February.
Banks have signed the intercreditor agreement (ICA) and are working on the resolution proposal submitted by DHFL management, including converting part debt into 51% equity.
This will see the stake of the Wadhawan family, the promoters, halve to 20%. DHFL’s project loans amount to Rs 35,078 crore — this is being sold to Oaktree — while those on account of the Slum Rehabilitation Authority (SRA) stand at Rs 11,967 crore.
The management expects lenders, led by State Bank of India (SBI), to move quickly to complete the debt resolution proposal so that the company gets fresh credit. The committee of creditors will meet on November 13-15 to vote on the resolution. It’s expecting Rs 1,000-1,500 crore in such lending from banks to help grow the credit book.