Dewan Housing Finance Corp. Ltd (DHFL) has signed a pact with Oaktree Capital to sell its entire Rs 35,000 crore wholesale book, reported The Economic Times. The non-binding term sheet signed by the two parties will be valid until February.

“DHFL has signed a non-binding term sheet with Oaktree Capital for Rs 35,000 crore of its wholesale book … It is for lenders led by the SBI

The banks are working on the resolution proposal submitted by DHFL and have signed the inter-creditor agreement, the report added. The banks are looking at the plan which also includes a proposal to convert a portion of the firm’s debt into 50 percent equity which will lead to the halving of promoter Wadhawan family’s stake to 20 percent.

Earlier, the report said, DHFL had sold assets worth Rs 3,000 crore to Oaktree Capital and another small portion to SC Lowy. The firm had also appointed Vaijinath MG, a former chief general manager of the State Bank of India, as CEO and floated draft debt resolution plan to tackle the current crisis.