Money & Banking

Altico seeks rescuers as NBFC crisis worsens

Bloomberg December 23 | Updated on December 23, 2019 Published on December 23, 2019

Lenders to a non-banking financial company at the center of an industry crisis since it started defaulting three months ago have called for binding bids from potential rescuers by mid-January, people familiar with the matter said.

Altico Capital India Ltd is one of the latest caught up in the nation’s NBFC crisis, which has deepened as lenders already reeling from one of the world’s worst bad loan piles balk at extending more credit.

The NBFC started defaulting on its interest repayments in September, and its lenders are keen for it to get an equity infusion for any debt restructuring plan to be cleared, the people said, asking not to be identified as the discussions are private.

Potential investors and creditors in Altico, which focusses on real estate lending and counts Clearwater Capital Partners among its main shareholders, are waiting for due diligence reports and will take a final call on the valuation and decide on any resolution plan by the end of January, according to the people.

A spokesman for Altico declined to comment. There was no immediate reply to an e-mailed request for comment to a Clearwater spokesperson and to lead lender SBI, and calls went unanswered.

Alitco’s bad loans spiked to 23.8 per cent of its loan book in the July-September quarter, adding to concerns of recovery for the lenders.

Published on December 23, 2019
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