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Business News/ Companies / News/  Altico Capital COO Sanjeev Agrawal takes charge after CEO’s sudden exit
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Altico Capital COO Sanjeev Agrawal takes charge after CEO’s sudden exit

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
  • Altico Capital India chief operating officer Sanjeev Agrawal.Premium
    Altico Capital India chief operating officer Sanjeev Agrawal.

    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.

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    Gopika Gopakumar
    Gopika Gopakumar has worked for over 15 years as a banking journalist across print and television media. Her expertise lies in breaking big corporate stories and producing news based TV shows. She was part of the 2013 IMF Journalism Fellowship Program where she covered the Annual & Spring meetings of the International Monetary Fund in Washington D.C. She started her career with CNBC-TV18, where she also produced a news feature show called Indianomics and an award winning show on business stories from South India called Up South. She joined Mint in 2016.
    Catch all the Elections News, Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
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    Updated: 22 Sep 2019, 08:46 PM IST
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