DHFL defaults on NCD repayments of `50 cr; says can't pay due to moratorium restrictions
New Delhi: DHFL has defaulted on payment of Rs 50 crore on bonds, saying the company is not in a position to make payments to the lenders as it is under moratorium since last November.
The payment has not been made by the company to the respective investors of the secured NCDs (non-convertible debentures) for a principal amount of Rs 50 crore due on July 3, 2020, DHFL said.
The company is currently under moratorium under the Code (IBC) since November 29, 2019 and hence, it is not in a position to make payment of interest or principal to any of the lenders of the company, including the NCDs holders, DHFL said. The payments to the lenders or NCD holders remain in abeyance and will be subject to the outcome of the corporate insolvency resolution process (CIRP), it added.
The board of the crisis-ridden non-banking financial company was superseded by the Reserve Bank on November 20, 2019 due to various financial irregularities and mismanagement and the central bank appointed an administrator for the firm. Further, RBI on November 22 constituted a three member advisory committee to assist the administrator of the company to discharge his duties.
On November 29, 2019 the RBI filed an application for initiating CIRP against DHFL under the IBC 2016 read with rules of the Insolvency and Bankruptcy (Insolvency and Liquidation Proceedings of Financial Service, Providers and Application to Adjudication of Authority) Rules, 2019. Subsequently, on December 3, 2019 the National Company Law Tribunal bench at Mumbai commenced the CIRP against the company, Dewan Housing Finance Corp Ltd (DHFL) said.