Deutsche Bank doubles down on Indian shadow lender Altico’s debt

A logo sits illuminated on Deutsche Bank AG headquarters office building in Frankfurt, Germany, on Monday, Nov. 6, 2017. Photographer: Krisztian Bocsi/Bloomberg

Deutsche Bank AG and Broad Peak Investment Advisers Ltd. bought more debt of an embattled Indian shadow lender, highlighting the growing foreign interest in the discounted assets of the financier at the center of an evolving credit crisis.

Deutsche Bank has almost doubled the debt it holds of Altico Capital India Ltd. to 3 billion rupees ($42 million) in the last four months, while Singapore-based Broad Peak has acquired debt of about 1 billion rupees, people familiar with the matter said. The German lender is now a member of the steering committee of creditors driving Altico’s debt restructuring, the people said, asking not to be identified as the information isn’t public.

Interest in purchasing Altico’s debt is increasing even as certain potential bidders for the delinquent financier shy away from an auction process to sell the firm. A shareholder sponsored restructuring plan and an asset swap plan supported by some creditors are also under consideration to salvage Altico.

Altico’s debt had been traded several times over the last few months, as creditors including another local shadow bank Bajaj Finance Ltd., and Abu Dhabi Commercial Bank PJSC sold their holdings, one of the people said. The most recent trade was made at almost half the face value when Abu Dhabi Commercial sold its holding in December, the people said.

Spokesmen for Deutsche Bank, Broad Peak and Altico declined to comment while representatives for Abu Dhabi Commercial and Bajaj Finance didn’t immediately respond to emails seeking comment.

Bloomberg

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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).

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  • 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.