Hedge Funds Cerberus, SSG Compete over India Shadow Bank Altico
A pedestrian holding an umbrella is reflected in a window of a building in New York, U.S. (Photographer: Michael Nagle/Bloomberg)  

Hedge Funds Cerberus, SSG Compete over India Shadow Bank Altico

(Bloomberg) -- Competition for ownership of Indian shadow bank Altico Capital India Ltd. has revived with the re-entry of Cerberus Capital Management LP into the race.

New York-based hedge fund Cerberus submitted a bid for ailing Altico last week, after getting an extension from an initial deadline in the previous week, said people familiar with the matter.

The creditor-run debt restructuring at Altico is being keenly followed as a barometer of India’s shadow banking crisis, as well as a potential opportunity for hedge funds and banks trading discounted debt.

Cerberus’ bid competes with a bid from SSG Capital Management, a shareholder-sponsored debt recast plan, and an asset swap bid mooted by some creditors. Lenders discussed all alternatives at a meeting on Jan. 30, the people said, asking not to be identified because the matter is private.

The final field has narrowed since the restructuring process kicked off in September, with other bidders including Apollo Capital Management and Kotak Investment Advisers pulling out.

A Cerberus spokeswoman and an Altico spokesman declined to comment.

©2020 Bloomberg L.P.

Also read: Hedge Funds Say Copper Is a Cheap, But Terrifying Trade

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.