Home >Companies >News >Rescuers seek binding bids for Altico Capital by mid-January as crisis deepens

Lenders to an Indian shadow bank at the centre of an industry crisis since it started defaulting three months ago have called for binding bids from potential rescuers by mid-January, people familiar with the matter said.

Altico Capital India Ltd. is one of the latest caught up in the nation’s shadow banking crisis, which has deepened as lenders already reeling from one of the world’s worst bad loan piles balk at extending more credit.

The shadow bank started defaulting on its interest repayments in September, and its lenders are keen for it to get an equity infusion for any debt restructuring plan to be cleared, the people said, asking not to be identified as the discussions are private.

Potential investors and creditors in Altico, which focuses on real estate lending and counts Clearwater Capital Partners among its main shareholders, are waiting for due diligence reports and will take a final call on the valuation and decide on any resolution plan by the end of January, according to the people.

A spokesman for Altico declined to comment. There was no immediate reply to an emailed request for comment to a Clearwater spokesperson and to lead lender State Bank of India, and calls went unanswered.

Alitco’s bad loans spiked to 23.8% of its loan book in the July-September quarter, adding to concerns of recovery for the lenders.

This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.

Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.

Never miss a story! Stay connected and informed with Mint. Download our App Now!!

Edit Profile
My ReadsRedeem a Gift CardLogout