Asset managers in India are seeking regulatory approval to join creditors as one of the nation’s major shadow lenders tries to pull itself out of distress.
A body of mutual funds has written to the Securities & Exchange Board of India seeking clarity on whether they can participate in an inter-creditor agreement drafted by banks who have lent to Dewan Housing Finance Corp.
The financier has about 63 billion rupees ($894 million) of principal and interest repayments on rupee bonds due in August and September to mutual funds, insurers and pension funds. Dewan didn’t service most of its financial obligations last month and its credit rating has been cut to D by major Indian ratings agencies.
