DHFL may get a Rs 7,000 crore sustenance

Dewan Housing Finance Corp’s (DHFL) lenders are considering Rs 7,000 crore in emergency funding to the debt-laden financier even as the creditors decide on the formula for conversion of debt into equity, which is a key part of the proposed restructuring plan. Separately, mutual funds are unlikely to sign the inter-creditor agreement (ICA) for DHFL, citing a regulatory rider known as sidepocketing or segregation of stressed assets. Only Tata Mutual Fund, which has already complied with relevant regulations, has agreed to be part of the ICA. The restructuring focuses on the wholesale loans the company has given to builders and also on some slum rehabilitation schemes. These are not generating cash flows to remain sustainable.