The company, backed by global private equity investors – Clearwater Capital Partners, Varde Partners and Abu Dhabi Investment Council – has an underlying collateral value of around Rs 11,000 crore, against the total loans of Rs 7,000 crore.
Crisis-ridden Altico Capital India is understood to have made a proposal to lenders that it will clear dues in full —including interest — in a span of four-five years. This proposal is part of the debt resolution process currently at works in the beleaguered NBFC, sources told FE.
Lenders are said to have noted that it is an “asset rich, cash poor” situation at Altico, and the steps proposed are aimed at collectively solving the cash flow mismatch. However, FE could not immediately confirm with lenders if they have accepted the proposal.
The proposal has been made at the meeting between Altico and lenders on Wednesday, sources said. The company, backed by global private equity investors – Clearwater Capital Partners, Varde Partners and Abu Dhabi Investment Council – has an underlying collateral value of around Rs 11,000 crore, against the total loans of Rs 7,000 crore. Of Rs 7,000-crore lent, Rs 3,000 crore is equity while the remaining Rs 4,000 crore is debt.
Altico defaulted on interest payment to the tune of Rs 19.97 crore on a Rs 340-crore external commercial borrowing by Mashreq Bank on September 12, post which the company’s long- and short-term issuer ratings were downgraded.
FE had reported on September 28 that Altico has been in talks with strategic investors who are understood to have evinced interest in acquiring a controlling stake in the NBFC.
The company was also expected to get short-term funds to the tune Rs 2,000 crore by way of sale of some of its existing loans and assets.
New York-based private equity firm Apollo Global Management is understood to have made an offer to invest $150 million as equity in Altico earlier this month. Kotak Realty Fund and another New York-based PE firm Cerberus Capital Management are also likely to be in the fray for investing in the NBFC.