10,029.10-32.45
Stock Analysis, IPO, Mutual Funds, Bonds & More

Hong Kong-based SSG trumps Cerberus to bag Altico after revised offer

SSG’s final offer after multiple revisions is an upfront cash payment of Rs 2,700 crore and a one year employment guarantee for the management team. Altico owes about Rs 4,000 crore to State Bank of India, Deutsche Bank, Bank of Baroda, Yes Bank, Union Bank, Mashreq Bank and IFC, besides NBFCs and mutual funds including Aditya Birla Finance, Bajaj Finance and L&T Finance.

, ET Bureau|
Last Updated: Mar 13, 2020, 11.53 AM IST
0Comments
invest1_bccl
The lenders are believe to be favour of the bidders who is proposing the highest upfront cash payment.
Mumbai: SSG Capital Management has emerged as the preferred bidder to take over the Alteco, after lenders met on Wednesday and Thursday for a final vote on the resolution of the troubled real estate financier, said people directly involved in the process.

Hong Kong-based SSG’s final offer after multiple revisions is an upfront cash payment of Rs 2,700 crore and a one year employment guarantee for the management team. ET in its edition dated February 27 th had reported SSG and Cerberus Capital were the two key contenders for Altico.

Altico owes about Rs 4,000 crore to State Bank of India, Deutsche Bank, Bank of Baroda, Yes Bank, Union Bank, Mashreq Bank and IFC, besides NBFCs and mutual funds including Aditya Birla Finance, Bajaj Finance and L&T Finance.

The lenders are believe to be favour of the bidders who is proposing the highest upfront cash payment. Cerberus Capital Management in comparison offered Rs 2250 crore and Rs 450 crore of security receipts, payable when able.

Key lenders incuding Deutsche Bank and SBI are believed to have been supporting SSG.

Interestingly, SSG had also made a second proposal — Rs 2,150 crore upfront payment plus Rs 1,500-1,750 crore of security receipts. It also suggested Altico’s bad loans be moved to an asset reconstruction company chosen by the lenders. But this was not taken up for voting.

SBI Caps, advisor to the transaction and SSG did not respond to ET’s queries.

SSG has been active in India in the special situations and distress segment with investments in Kishore Biyani’s Future Group, Cox And Kings, Tourism Finance Corporation of India. It tied up with Tatas to invest in GMR’s airport business but that deal did not fructify.

The creditor-run recast is being keenly tracked for an indication on how the country’s shadow banking crisis will be resolved and the opportunity this presents for hedge funds, structured debt and distressed asset investors. The real estate lender faced a liquidity crunch in September and defaulted on Rs 138 crore of debt repayments.

Lenders are struggling to realise a higher value in other big cases, including Dewan Housing Finance Corporation Ltd and Infrastructure Leasing & Financial Services, as they have stopped their core business activities.
(Catch all the Business News, Breaking News Events and Latest News Updates on The Economic Times.)

Also Read

Cerberus revises offer for Altico to counter SSG bid

It’s SSG vs Cerberus as Altico takeover reaches last lap

Pakistan moves heavy artillery, SSG commandos close to Line of Control after August 5

Goldman Sachs and SSG in talks to buy RattanIndia bad loans

Comments
Add Your Comments
Commenting feature is disabled in your country/region.

Other useful Links


Copyright © 2020 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service