The company said in a regulatory filing that the draft resolution plan is no longer valid following commencement of insolvency proceedings against it in November last year under the Insolvency and Bankruptcy Code (IBC). The resolution plan envisaged lenders converting a part of the debt into equity and take a 51% stake in the mortgage lender. “We hereby request you to take down/ remove from record, the draft Resolution Plan that was formulated and presented to all its institutional creditors including banks, financial institutions, mutual funds, insurance companies and other institutional bond holders. The draft resolution plan, prepared by the erstwhile management of the company, is no longer valid and may no longer be valid," the company said in a statement to stock exchanges. DHFL is the first non-bank lender to be referred to NCLT under new rules notified by the government on 15 November, 2019.

Source: Mint January 27, 2020 12:11 UTC