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.
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.
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