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Last Updated : Sep 13, 2019 01:20 PM IST | Source: Moneycontrol.com

NBFC crisis deepens; Altico defaults on interest payment to Mashreqbank

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

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Worries over the crisis in the NBFC sector grew stronger after Altico Capital India defaulted on the interest payment obligation on External Commercial Borrowing availed from the UAE-based Mashreqbank.

The company, in a regulatory filing, said it defaulted on the interest payment of Rs 19.97 crore.

"Our failure to repay the amounts set out above may result in an acceleration of interest repayment or redemption obligations in respect of non-convertible debt securities issued by us and may trigger a default in their timely repayments," the company said in a statement.

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Clearwater Capital Partners, Varde Partners and Abu Dhabi Investment Council are investors in Altico and its loan book of Rs 6,900 crore (as of June 2019) has exposure to real-estate developers.

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

In early September, India Ratings and Research had downgraded Altico's long-term issuer rating to IND A+' from IND AA-' and short-term Issuer rating to IND A1' from IND A1+', with a negative outlook.

Altico's default can trigger fresh worries in the already fragile atmosphere of NBFC space.

Shares of non-banking finance companies have been under immense pressure since September 2018 after a cash crunch hit IL&FS, which defaulted on interest payment.

Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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First Published on Sep 13, 2019 01:20 pm
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