Troubled realty-focused lender Altico Capital seeks to raise $280m

Altico Capital India Ltd, the real estate-focused lender that defaulted on interest payments in September, has proposed to sell loans worth around 2,000 crore as part of its debt resolution plan, two people directly aware of the development said.

The resolution plan is expected to be submitted to Altico’s lenders and investors by the end of next week, the people cited above said on condition of anonymity.

The Mumbai-based real estate lender has already identified the assets that it plans to sell as part of its resolution plan and it will offer the proceeds from such a sale, upfront to its lenders, said the first person mentioned above.

“The immediate plan right now is to monetize these assets. We already have a strong interest for these properties mainly from lenders who are in a similar business,” the first person said.

Located across seven cities, including Mumbai, Chennai and Bengaluru, these assets are land parcels, commercial and residential projects at different stages of constructions. The company’s portfolio of real estate investment spread across 30% commercial office, 60% residential and the remaining in logistics and warehousing.

At present, Altico’s total outstanding debt stands at 4,361.5 crore, from 27 lenders including Yes Bank, State Bank of India and HDFC Bank, among others.

“While there is a problem with financing in real estate, there is a lot of interest in equity because equity has no pressure of being non-performing assets,” the person cited above said. The first draft of the resolution plan would be presented to the lenders by next week and the company expects to execute the plan, once approved, within 90 days, he added.

This article was first published on livemint.com

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.