Shardul Amarchand Mangaldas & Co. advises Altico and its the Board of Directors in one of its kind NBFC resolution

March 11, 2021

Shardul Amarchand Mangaldas & Co. advised Altico and its Board of Directors, in a lender driven resolution. Altico is one of the largest foreign owned and controlled NBFC, which focuses on the real estate sector.

This is the first successful resolution of a non-banking financial company (NBFC) outside of the Insolvency and Bankruptcy Code, 2016. The transaction gains significance given Altico’s size and the complexity of the resolution.

The lenders of Altico undertook several actions and explored various options to arrive at a resolution. Such process resulted in the lenders unanimously selecting Ares SSG Capital Management (Singapore) Pte. Ltd. (Ares SSG) as the successful resolution applicant. The resolution contemplates sale of Altico’s loan assets to nominees identified by SSG. The proceeds of such sale are intended to be utilised to settle lenders’ debt with an agreed lock-box style adjustments. Upon sale of all the loan assets, Altico intends to surrender its registration as a NBFC with Reserve Bank of India.

The structuring, advisory, and transaction team was led by Veena Sivaramakrishnan, Partner; Ambarish, Partner; Soummo Biswas, Partner; Sagar Manju, Principal Associate; Aditi Tralshawala, Senior Associate; Charu Misra, Senior Associate; Yash Kahandole, Associate; Paavni Anand, Associate; and Varun Marwah, Associate.

Gopalkrishna Hegde, Consultant advised on all the regulatory aspects of the transaction. Shardul Shroff, Executive Chairman; Sudarshan Sen, Consultant provided key strategy advice to the transaction.

Cyril Amarchand Mangaldas advised all the lenders, led by State Bank of India. J. Sagar Associates advised Ares SSG Capital Management (Singapore) Pte. Ltd. AZB & Partners advised Värde Partners, Inc.