Tag: Altico Capital India Limited

Ares SSG on Thursday announced that some of its funds have completed the acquisition of all underlying assets of Altico Capital India Limited.

“The acquisition marks the first resolution of a defaulting NBFC outside India’s Insolvency and Bankruptcy Code and represents Ares SSG’s single largest investment in India to date,” said the Asia Pacific alternative asset manager.

Funds managed by Ares SSG along with Assets Care and Reconstruction Enterprise have acquired all outstanding loans and investments from Altico for about ₹2,800 crore, which is in line with its original resolution plan submitted in February 2020.

“Ares SSG’s plan has ensured a full resolution while also maximising the value of the underlying assets for creditors, despite the adverse impact of the pandemic on several of Altico’s portfolio companies,” the statement said.

Debt ridden Altico had been facing a liquidity crisis since late 2019. It had defaulted on about ₹20 crore to Mashreq Bank in September 2019.

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Lenders led by State Bank of India had then formed a committee and initiated the resolution plan. In all, about 27 lenders have exposure to Altico Capital.

In the statement, Ares SSG said Altico’s entire team will continue to assist in servicing the existing portfolio.

“This investment also highlights our confidence in the prospects for India and the steps being taken to spur growth that has over the past year been held back by the global pandemic,” said Shyam Maheshwari, Partner, Ares SSG.

Manish Jain, CEO, SSG Advisors, an advisor to Ares SSG, said, “Ares SSG’s plan for Altico allows its creditors to realise immediate value for the assets.”

Set up in 2004, Altico Capital is an NBFC, which focuses on senior secured lending to mid-income residential projects and Commercial Real Estate sector across Tier-1 cities. It also provides structured finance solutions to the infrastructure and other adjacent sectors.