Cash-strapped mortgage lender Dewan Housing Finance Corporation Ltd. (DHFL) is negotiating with Oaktree Capital, an alternative investment management fund, to sell its entire wholesale lending book of ₹38,000 crore, which includes the project finance portfolio and Slum Rehabilitation Authority (SRA) projects.
The deal is important for the lender, which is also negotiating with banks to restructure debt. If the deal fructifies, DHFL will get about ₹10,000 crore, which will enable the company to push business growth.
Sources said a non-binding agreement with Oaktree has been inked, which could be followed by a binding one.
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According to sources, the SRA projects funded by DHFL have been assigned master developers, who will be responsible for financing and approving designs. The master developers are Piramal, Poddar Housing and Adani.
DHFL will hold a meeting with banks on Tuesday to discuss the draft resolution plan, the company informed the stock exchanges.
“A further meeting will also be held on Friday, September 27, 2019 by the company with all its institutional creditors in connection with the draft resolution plan,” it said.
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The draft resolution plan, which has been prepared by DHFL, suggested ₹1,000 crore to ₹1,200 crore loans every month for one year, so that it can kick start its lending activity. The business of DHFL was impacted after banks stopped lending to the company. DHFL had also wanted moratorium on loan repayment for a certain period of time.