Lenders to Dewan Housing Finance Ltd (DHFL) are planning to ask the company’s 86,000 non-convertible debenture holders to be part of the inter-creditor agreement to pre-empt likely litigation over dues, three bankers aware of the matter said.

Seven state-run lenders to DHFL, including State Bank of India and Union Bank of India, met 300 institutional bondholders comprising mutual funds, provident funds and pension funds on Thursday to explore options of working together to restructure DHFL’s  ₹1 trillion debt. DHFL’s chairman Kapil Wadhawan was also part of the meeting.

“We are looking at restructuring the company as a going concern. Lenders will work with NCD holders, shoulder-to-shoulder, to realize the maximum value," said a senior banker, one of the three cited above, on the condition of anonymity. “It’s not mandatory on the part of NCD holders to sign the ICA."

Of DHFL’s total  ₹1 trillion debt as of February,  ₹38,000 crore has been borrowed from banks.