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Report: Lenders tap advisers to prepare resolution plan for Altico Capital

Lenders to Altico Capital India Ltd. engaged EY India and SBI Capital Markets to prepare a resolution plan for the troubled real estate-focused nonbank finance company, which defaulted on interest payments on a bank loan in September, The Economic Times reported Oct. 8, citing unnamed sources.

Altico Capital is reportedly working on its own resolution plan, which it will submit to its lenders, according to sources involved in the exercise. The banks have reached out to global investors about the potential sale of a stake in the company. One of the sources said the lenders are "keen" to give a controlling stake in the company to one of the foreign investors.

EY India and SBI Capital declined to comment.

Altico Capital defaulted on interest payments on a loan obtained from Dubai-based Mashreq Bank in September. The company was said to be in talks with private equity funds for a stake sale, Mint reported Sept. 30. Investors have reportedly proposed a 30% to 40% haircut on the debt owed to the lenders, as part of the deal to infuse fresh capital into the company.