Hong Kong-based SSG Capital has been declared the highest bidder or H1 for troubled financier Altico Capital by its lenders, multiple bankers aware of the talks confirmed to CNBC-TV18.
A consortium of banks led by State Bank of India (SBI) voted on the proposals from all three suitors, SSG Capital, Cerebrus Capital and even one from the current management of Altico, and 98 percent of votes went to SGG Capital, as per bank executives in know.
SSG Capital has offered Rs 2,754 crore as an upfront cash payment to the lenders and another Rs 354 crore in the form of security receipts, a senior banker leading the discussions told CNBC-TV18. This will yield a recovery of about 78 percent in net present value terms, the person quoted above added.
New York-based private equity firm Cerberus Capital Management, Hong Kong-based asset manager SSG Capital and Clearwater-backed current management had all proposed takeover bids for the company to the lenders.
Cerberus has offered Rs 2,600 crore as upfront cash, Rs 450 crore of security receipts and thereafter another Rs 1,000 crore equity infusion after the takeover, said people familiar with the plan.
The current management of Altico Capital, which is backed by marquee investors like Clearwater Capital, had also proposed an offer to repay the entire debt over a period of eight to ten years with restructured terms, said another bank executive in the know.
SSG Capital’s offer seemed most attractive of the lot, and promised the highest recovery taking all things into account, several banks told CNBC-TV18 on the condition of anonymity.
The lenders of Altico Capital will now put up SSG Capital's resolution plan for final voting on March 16, said another person familiar with the talks.
Altico Capital, which faced liquidity crunch in September 2019 had defaulted on loan payments, despite its backing by some marquee investors.
It defaulted on Rs 20 crore ECB repayment to Mashreq Bank last year, which led to a few lenders recalling loans. Thereafter, lenders formed a committee to execute a resolution plan for the NBFC under the RBI's June 7 circular by singing an Inter Creditor Agreement.
Altico Capital owes over Rs 4,300 crore to 27 lenders led by IFC, Yes Bank, State Bank of India, Bank of Baroda, UTI MF and Reliance MF among others.
