Altico Capital COO Sanjeev Agrawal takes charge after CEO’s sudden exit
2 min read . Updated: 22 Sep 2019, 08:46 PM IST
Premium- Altico Capital says the COO has the full backing of the board
- The company says it is committed to maintaining an open and active dialogue with all stakeholders
MUMBAI : Altico Capital India Ltd’s chief operating officer (COO) Sanjeev Agrawal has taken charge of the stressed company following the sudden resignation of its chief executive Sanjay Grewal, last week, the real estate financier assured its investors on Sunday.
The non-banking financial company (NBFC) said that the COO has the full backing of the board, which includes shareholder nominees of Clearwater Capital Partners India Pvt. Ltd, Abu Dhabi Investment Council, and Varde Partners. Altico also urged stakeholders to give the company time to craft a plan that may maximize asset value and refrain from actions that exacerbate liquidity problems.
On 20 September, Mint reported that the company has sought a moratorium on further repayment of loans.
The company, in its presentation to its lenders last week, had said it is in talks to sell some assets and infuse fresh funds from new shareholders, as part of a resolution plan.
“Altico has held a series of meetings with its creditors, with a view to agreeing to a way forward that the company expects will allow it to meet its financial commitments. It is important that stakeholders give Altico and its advisors time to craft a plan that may maximize asset value, refrain from actions that exacerbate the liquidity problem, and bear in mind the significant headwinds the real estate sector faces in India at the present time," it said.
The company is committed to maintaining an open and active dialogue with all stakeholders, including regulatory bodies, and will provide updates as appropriate, it said.
Trouble started when Altico received its first loan recall notice on 30 August after AU Small Finance Bank withheld ₹50 crore worth of fixed deposits. This was followed by a rating downgrade by India Ratings from AA- to A+ with negative outlook on 3 September, citing weak operating environment and diluted liquidity buffers. The NBFC received recall notices worth a total of ₹1,056 crore from its lenders since then.
On 13 September, Altico said that it didn’t pay ₹19.97 crore of interest on borrowings from Dubai-based Mashreqbank PSC.
India Ratings in its report had said that the company has been facing pressure of accelerated debt repayment from some lenders and also experiencing difficulty in mobilising fresh funds. It may be difficult for the NBFC to service its future debt obligations, the rating agency said. The company had sufficient cash balance but defaulted. Shareholders had earlier said they would ensure adequate liquidity for Altico, according to India Ratings. However, the shareholders did not shore up the liquidity buffers of the company.
