Singapore-based Ares to take over stressed financier Altico Capital

NEW DELHI: In an extraordinary general meeting on Wednesday, shareholders of Altico Capital India Ltd approved the sale of the company to Ares SSG Capital Management (Singapore) Pte Ltd, according to an exchange filing.

On Tuesday, the board of the company had approved the transaction, and also said that the company intends to make an application to the Reserve Bank of India to surrender its certificate of registration as a non-banking financial company.

The settlement involves the sale of the undertaking of the company, and settlement of the dues of the lenders, including listed non-convertible debentures issued by the company. Lenders to Altico Capital India had reportedly approved the takeover of the stressed financier by Ares SSG Capital as part of a resolution plan, which includes 27.5 bln rupees as upfront payment as against the total debt of 43 bln rupees that Altico Capital owes.

Additionally, Ares SSG Capital will infuse 3.54 bln rupees in the form of security receipts. In January, the Competition Commission of India had also approved the acquisition of the company by Ares SSG Capital Management. The financier owed 43 bln rupees to a consortium of lenders such as Bank of Baroda, YES Bank and State Bank of India.

Altico ran into trouble as it faced liquidity problems in 2019, and defaulted on interest payments.