Troubled nonbank finance company Altico Capital India Ltd. proposed to fully repay lenders' dues over the next five years as part of its resolution plan, The Economic Times reported, citing two people with the direct knowledge of the matter.
The real estate-focused company submitted the resolution plan to its lenders, including State Bank of India ,Mashreqbank, Yes Bank Ltd. and Bank of Baroda. The company plans to use funds raised from its asset divestment plan to repay some banks, and may issue upfront bonds to mutual funds such as Nippon India or UTI MF, the Oct. 17 report added.
Altico Capital has repayment liabilities of about 8 billion rupees until December, while its total outstanding debt stands at roughly 43.62 billion rupees. The banks asked the company to continue disbursing loans to running projects to maintain its cash flows, according to the report.
Altico did not respond to a request for comment, while lenders to the company could not be reached immediately for comment, the publication added.
As of Oct. 16, US$1 was equivalent to 71.41 Indian rupees.