Zee Group Chairman Subhash Chandra gives personal guarantee to lenders. DHFL debt woes. India’s services PMI slips for second month.
Lenders of Zee have entered a formal agreement with Chairman Subhash Chandra asking him to provide a personal guarantee for payment obligations on an “irrevocable and unconditional” basis.
Zee and its lenders had earlier entered an agreement to not sell off anymore pledged shares even if their value fell, providing Essel Group with adequate time to complete the strategic sale process of its key assets without any compromise on the value.
Living on the Edge: Dewan Housing Finance Corp. Ltd (DHFL) was recently downgraded by CARE Ratings and ICRA following a report by Cobrapost which accused it of siphoning funds through shell companies.
While DHFL and its holding company Wadhawan Global Capital have taken steps to prevent default on repayments by leveraging its cash holdings worth c. INR5,000cr, its stake in Aadhar Housing Finance Ltd and its asset management business, it is unlikely to go long without defaulting. Read this article to know why.
Against this backdrop, DHFL is looking for strategic partners which will trim promoter holdings in the company.
Also this: India’s services PMI for January fell to 52.2 in January vs. 53.2 in December.