Lenders to Altico Capital have voted in favour of the resolution plan proposed by special situations fund SSG Capital, a person aware of the development said.
The person said that the voting began on 11 March and ended at about 5pm on Thursday and that a majority of lenders voted in favour of SSG Capital’s resolution plan.
SSG Capital has offered ₹2,750 crore upfront for the non-banking financial company (NBFC), but plans to sell off its loans and close it down later. The other contender, private equity firm Cerberus Capital, offered ₹2,500 crore upfront, security receipts (SRs) of ₹400 crore redeemable in three years, and ₹1,000 crore as equity infusion.
Altico Capital, which is backed by Clearwater Capital Partners, Abu Dhabi Investment Council and Varde Partners, defaulted on interest payment to Dubai-based Mashreqbank PSC in September, amid tight liquidity in India’s credit market.
Mint reported on 2 March that while rescue plans for Altico Capital were in, lenders were caught in a dilemma. The higher offer effectively winds up the troubled lender, while the lower one saves jobs and ensures continuity.
Apart from these two, the current management of Altico Capital has also worked out a debt recast plan. It does not offer any upfront payment, but offers to repay the entire debt in 69 months at an interest rate of 10%.
