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Altico Capital’s Lenders Accept Offer By SSG Capital

Altico Capital Ltd. is set to get resolved as the lending consortium has accepted an offer by Hong Kong’s SSG Capital.

A worker carries a stack of crates on his head in front of the Sunshine Tower, developed by Sunshine Housing & Infrastructure Pvt., left, in the Dadar area of Mumbai. Photographer: Dhiraj Singh/Bloomberg
A worker carries a stack of crates on his head in front of the Sunshine Tower, developed by Sunshine Housing & Infrastructure Pvt., left, in the Dadar area of Mumbai. Photographer: Dhiraj Singh/Bloomberg

Stressed real estate lending firm Altico Capital Ltd. is set to get resolved as the lending consortium has accepted an offer by Hong Kong-based stressed asset investor SSG Capital.

Lenders led by State Bank of India have accepted an offer in which SSG Capital will offer Rs 2,754 crore upfront and pay the rest of the settlement over time through security receipts, SBI Capital Markets said in a statement.

The offer would result in an 80 percent recovery for lenders, the statement said while not specifying the amount to be paid over time. SBI Capital Markets had advised lenders through the resolution process.

In September 2019, Altico Capital had failed to repay interest to Mashreq Bank on external commercial borrowings. Following this, the company’s financial position deteriorated rapidly, which led to lenders finding a resolution plan for the company.

In the interim, Altico Capital also lost two chief executive officers in rapid succession. Cerberus Capital Management and the promoters of Altico Capital—including Varde Partners, Clearwater Capital and Abu Dhabi Investment Council—had also submitted plans, BloombergQuint had reported on Feb. 17.

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BQ Exclusive: Altico Capital’s Lenders Lean Toward SSG Capital Resolution Plan