Real estate financier Altico Capital India Ltd, which defaulted on an interest payment recently, has sought a moratorium on further repayments from its lenders.

In a presentation to its lenders earlier this week, Altico said it is in talks to sell some assets and infuse fresh funds from new shareholders, as part of a resolution plan. For this, Altico said it is working alongside turnaround advisory firm Alvarez and Marshal and legal adviser Shardul Amarchand Mangaldas to preserve the value of its assets, and maintain the company as a going concern till a long-term solution can be implemented. A copy of the presentation was reviewed by Mint.

The non-banking financial company (NBFC) has 4,361.55 crore of principal outstanding on loans from 27 lenders.

Among the lenders, Altico Capital owes the most to IFCI ( 463 crore), Yes Bank ( 400 crore), State Bank of India ( 363 crore), UTI Mutual Fund ( 359 crore), and HDFC Bank ( 280 crore).

Like other NBFCs, Altico said it has also been affected by the overall market sentiment.

The company said that the recent loan recall notices from lenders worsened the liquidity situation.

In its presentation, Altico said it has prepaid 700 crore worth of loans due to very high interest rate resets by two lenders, or because they exercised a put option in April- June quarter.

The non-banking financial company received its first recall notice on 30 August after the bank withheld 50 crore worth fixed deposits. This was followed by a rating downgrade by India Ratings A+ from AA- with a negative outlook on 3 September, citing weak operating environment and diluted liquidity buffers.

The NBFC has received total recall notices worth 1,056 crore from its lenders since 30 August. IFCI Ltd and Yes Bank have recalled payments of 170 crore and 250 crore, respectively, from Altico on 4 September. While Thursday was the repayment due date for the IFCI loan (given through NCDs), 3 October is the repayment due date for the Yes Bank loan.

SBI, UTI Mutual Fund and HDFC Bank, too, have sent recall notices to Altico Capital on 6 September, 7 September and 9 September, demanding repayments of 292 crore, 180 crore and 100 crore, respectively. On 13 September, Altico Capital said in an exchange filing that it didn’t pay 19.97 crore of interest on borrowings from Dubai-based Mashreqbank PSC.

My Reads Logout