DHFL offers to repay investors in full, but seeks approval for ICA

Dewan Housing Finance Corporation (DHFL) has offered to repay investors in full without any haircut over a period of time but has sought their consent to a bank-led process called the Inter-Creditor Agreement (ICA). The company met representatives of non-bank institutional lenders and investors — including mutual funds, insurers, Employees’ Provident Fund Organisation (EPFO), provident funds and offshore lenders — and tried to persuade them to accept the plan proposed by the banks. The mutual funds and other investors are wary of the plan and want a full and final payment immediately. The ICA, which has already been signed by lenders, involves a package aimed at reviving the indebted company. Kapil Wadhawan, chairman of DHFL, along with two senior executives, was present at the meeting. A detailed presentation on the resolution plan was made.