DHFL under resolution process, declared to not make any payments to lenders and bondholders.

Dewan Housing Finance Corporation (DHFL) said on Tuesday it would not make any interest or principal payments to lenders and bondholders as the firm is under resolution process.

The Corporate Insolvency Resolution Process (CIRP) was started against the debt-ridden corporation in compliance with the 2016 Insolvency and Bankruptcy Code regulations with effect from December 3, 2019.

DHFL said all the company’s rated debt papers bear default grade ratings and disclosures were provided to the exchanges on the same. The company’s creditors were duly informed of the commencement of the CIRP and were asked to submit their claims to the company in the manner specified by the Code.

The amount that the creditors would receive against the dues would be based on a resolution plan to be authorised in due course by the NCLT, Mumbai, DHFL said in a regulatory filing.

Furthermore, the non-banking finance company (NBFC) said it is under a moratorium, and lenders and bondholders should stay in abeyance until the CRIP is done.

As the crisis erupted, the company made a string of debt defaults and was sacked by the RBI last year at the end of November on concerns over its corporate governance and defaults, and appointed an administrator.

The beleaguered home financier had owed Rs 83,873 to banks, the National Housing Board, mutual funds and bondholders/retail bondholders as of July 2019. Out of this secured debt is Rs 74.054 crore and Rs 9.818 crore is unsecured.