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Last Updated : Sep 22, 2019 03:55 PM IST | Source: Moneycontrol.com

Altico Capital seeks time to restructure debt

Altico Capital has Rs 4,361.5 crore of principal outstanding on loans from 27 lenders including SBI, HDFC Bank, Yes Bank and IFCI

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Real estate financier Altico Capital, which recently defaulted on debt repayments, has sought time from lenders to work out a resolution plan to meet its financial commitments.

The non-banking finance company (NBFC) has held a series of meetings with its creditors to reach a resolution plan, Altico said in a statement.

“It is important that stakeholders give Altico and its advisors time to craft a plan that may maximize asset value, refrain from actions that exacerbate the liquidity problem and bear in mind the significant headwinds the real estate sector faces in India at the present time,” Altico said.

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The company added that many of its lenders had recalled a substantial amount of debt after it received one-notch rating downgrade earlier in September. Altico said that it did not have sufficient liquidity to honour all its obligations on a timely basis.

“This lack of capacity led Altico to pause further debt repayments in order to maintain itself as a going concern and to protect the interests of all stakeholders,” the NBFC said.

Altico Capital has Rs 4,361.5 crore of principal outstanding on loans from 27 lenders including the State Bank of India (SBI), HDFC BankYes Bank and IFCI.

In a meeting with lenders last week, the NBFC sought moratorium on loans citing challenges being faced by the company and the real estate sector.

Over the past month, top officials have resigned from the company, leaving a hole in the senior leadership. After losing its chairperson Naina Lal Kidwai, the company reported resignation of its CEO Sanjay Grewal on September 18.

Altico said it is now being led by COO Sanjeev Agarwal.

“The company has as well appointed financial and legal advisors to support discussions with creditors, each of which are industry-leading and will help guide the situation to the best possible outcome,” the NBFC said, adding that Altico is committed to maintaining an open and active dialogue with all stakeholders, including regulatory authorities.

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First Published on Sep 22, 2019 03:54 pm
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