MUMBAI, Nov. 20 -- Lenders to troubled Dewan Housing Finance Ltd (DHFL) are looking at a repayment strategy for 55,000 fixed deposit (FD) holders as part of a resolution plan.
According to the minutes of a meeting of the committee of creditors (CoC) held this month, the lenders are looking at various scenarios to distribute the proceeds of the funds received from the new investor. This includes distribution under the waterfall mechanism or under pari-passu distribution mechanism or setting aside some amount of the outstanding claims for small investors.
According to the waterfall mechanism under the Insolvency and Bankruptcy Code (IBC), secured creditors have to be paid fully before any payments can be made to unsecured financial creditor...