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The lenders to Altico Capital India Ltd (ACIL) have unanimously approved Hong Kong-based SSG Capital’s resolution plan. The offer includes an upfront cash offer of ₹2,754 crore and certain security receipts/pass through certificates.
The resolution process, led by SBI Capital Markets as advisor and SBI as lead bank, envisages the recovery of around 78 per cent of debt, said SBI Cap. This is probably the highest recovery witnessed by creditors in a stressed situation, it added.
With 100 per cent approval, this paves the way for the first non-banking finance company (NFBC) resolution taking place outside the Insolvency and Bankruptcy Code.
Altico Capital had defaulted on interest payment to Dubai-based Mashreq Bank in September 2019, amid tight liquidity in India’s credit market. Post the default, one of the lenders had appropriated certain amount towards its outstanding, which was contested by the other lenders.
ACIL, which is registered with the RBI as a non-deposit accepting NBFC, focusses on senior secured lending to mid-income residential projects and commercial real estate projects. It also also focusses on providing structured finance solutions to the infrastructure and adjacent sectors.
Per a recent exchange filing, the total financial indebtedness of ACIL including short-term and long-term debt is ₹4,335 crore. This does not include ₹216.72 crore appropriated by HDFC Bank, said a statement.
The consortium of lenders to ACIL includes SBI, Bank of Baroda, YES Bank, Lakshmi Vilas Bank, Karnataka Bank, CSB Bank, Mashreq Bank, Abu Dhabi Commercial Bank, IFCI, Edelweiss ARC, Aditya Birla Finance, Hero Fincorp, mutual funds and debenture holders. In the absence of an inter creditor agreement, the resolution plan required 100 per cent consensus for approval.
ACIL, in recent disclosures to the exchanges, said it has paid out/earmarked funds aggregating ₹250 crore. The NBFC said this interim cash distribution has been/will be made to all lenders and debenture holders on a pro-rata basis to their principal outstanding and interest accrued up to the date of default — September 12, 2019.
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