1)the housing finance company has failed to make interest payment of Rs 850 crore on its non-convertible debentures (NCDs), following which its credit rating was downgraded to default by rating agencies.

2)

The RBI’s June 7 circular on ‘Prudential Framework for Resolution of Stressed Assets’ requires bankers to initiate the process of implementing an Resolution plan when the borrower is reported to be in default by any of its lenders. The circular mandates that all lenders with exposure to a particular entity enter into an inter-creditor agreement (ICA) during the ‘review period’ to provide for ground rules for finalisation and implementation of the RP.

The circular directs lenders to undertake a prima facie review of the borrower account within thirty days from a default, referred to within the circular as ‘review period’, during which lenders may decide on the resolution strategy, including the nature of the RP, the approach for implementation of the RP, etc

3) DHFL has total outstanding of close to one lakh crore 

4) you can give your consent to ICA 

5) The consortium of lenders to Dewan Housing Finance (DHFL) have decided to sign an inter-creditor agreement (ICA) by the end of this week as the first step towards resolution of the account

6) The exposure of banks is close to Rs 45,000 crore, which is nearly half the company’s total outstanding of close to Rs 1 lakh crore.

7) if you are not willing to sign ICA you are at liberty to take legal proceedings against company for recovery of your dues 

As part of the ICA, the company has formulated a draft resolution plan, as per the RBI's prudential framework for resolution of stressed assets.

2) ICA, one of our debenture trustees, namely, Catalyst Trusteeship Services Ltd, is also, undertaking the process of seeking consent from the debenture holders to be a party to the ICA," it said.

As per the ICA, DHFL  had said that none of its creditors will have to face any haircuts.

The said inter creditors agreement is mostly applicable to lenders in appointing resolution professional as per the direction of IBC. 

As per the RBI framework, in cases where a resolution plan (RP) is to be implemented, all lenders have to enter into an ICA during the 30-day review period (given to lenders after the first default to decide on the resolution strategy and implementation) to provide for ground rules for finalisation and implementation of the RP with respect to borrowers with credit facilities from more than one lender.

If you don't give consent they might tell you to withdraw the said debenture amount as per the policy

Dear Client, 

As per facts, you do not need to give consent to an inter-creditor agreement with DHFL. 

You are debenture holder have stake issued against company secured assets. Inter Creditors Agreement executes between lenders in a consortium.

Whats your role in it ?

You should not go with any inter creditors agreement. You are not a lender. You are an investor. Do not sign any such agreement without going through it in details. 

In case you do not give your consent for inter creditors agreement then your amount will be paid by the company and you will not be the part of creditors however this will take a lot of time to get your money back but in case you provide the consent for being the creditor of the company as soon as the company provides your secured investment may be paid off by the company

Since you are a stake holder in the company, for making such important changes as per the Companies Act, 2013 the management needs consent of at least 51% of the investors for making such structural changes.

In other words your consent makes little sense as long other investors are majority holders in giving such consent.

I dont think that you are under any obligation to sign the Inter creditors agreement because you are not lender of the company.

An inter creditor agreement is an agreement between two creditors agreeing in advance how their competing interests in their common borrower will be dealt with. Lenders are often required to address the priority of their loans and security in relation to another lender to the same borrower.

As per the RBI framework, in cases where a resolution plan (RP) is to be implemented, all lenders have to enter into an ICA during the 30-day review period (given to lenders after the first default to decide on the resolution strategy and implementation) to provide for ground rules for finalization and implementation of the RP with respect to borrowers with credit facilities from more than one lender.

The lead lender may convene a meeting of lenders as and when it considers necessary, and if a request to that effect is made by lenders whose share (as of the commencement of the review period) in the aggregate outstanding amounts to at least 33 per cent (by value).

When it comes to voting by lenders, the lead lender must place the proposed valuation methodology to compute the resolution value and the proposed RP for vote before lenders.

You may ascertain the situation and proceed, however there may be no adverse situation even if you accept the same in writing.

Every lender shall ensure that in any meeting of lenders, it is represented by persons who are competent and authorised to take decisions on the spot, without deferring them for internal approval.

During the resolution process and implementation of the RP — that has been approved by the majority lenders in accordance with ICA and the regulatory framework — the lenders (including any dissenting lender) should agree that they shall not initiate any legal action or proceedings (even those under the IBC), which may jeopardise the successful implementation of the RP, against the borrower or any other person.