Lenders’ meet on Altico’s potential restructuring deal next week: Sources

Mumbai, Sep 13 (IANS) The first lenders’ meet for a potential restructuring deal for NBFC Altico Capital India is scheduled to be held on next Monday, sources said on Friday.

Sources further revealed that Altico was advised not to fulfil the interest payment obligation on External Commercial Borrowing availed from the UAE-based Mashreqbank till the first lenders’ meet on a potential restructuring deal was held.

On Thursday, a regulatory filing disclosed the NBFC has defaulted on the gross principal amount of Rs 340 crore. The interest payment comes to Rs 19.97 crore.

According to sources, Altico has already initiated talks with lenders for a potential restructuring.

“They have appointed Alvarez & Marsal as debt advisor and SAM for legal. Together, they advised Altico to not pay Mashreq and wait for the first lenders’ meet which is scheduled for next Monday,” sources said on Friday.

Sources say that post the rating downgrade by India Ratings, AU Bank and HDFC Bank marked the company’s fixed deposit lying with them, as lien.

“First, AU Bank which had Rs 630 mn of fixed deposit as collateral, marked a lien on it. Once this came known, HDFC Bank too marked the fixed deposit lying with it of Rs 2.5 billion, as lien,” sources said.

“Altico still had another Rs 2.5to 3 billion of cash with other banks, to pay Mashreq Bank.”

The company’s total borrowings from banks or financial institutions stood at Rs 4,361.55 crore as on September 12.

Besides, the development comes just a day after a report surfaced that said the company’s Chairman Naina Lal Kidwai is understood to have stepped down.

Kidwai was the former Country Head and Group General Manager of HSBC India.

Altico Capital India was incorporated in January, 2004. The NBFC’s shareholders include Clearwater Capital Partners, Abu Dhabi Investment Council and Varde Partners.

The company focuses on senior secured lending to mid-income residential projects and Commercial Real Estate sector across Tier-1 cities in India which include Mumbai, NCR, Chennai, Bengaluru, Pune and Hyderabad.

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