HK-based Ares SSG Funds Acquires Altico Capital
Ares SSG Funds of Hong Kong on 11th March announced completion of acquisition of debt-ridden Altico Capital, a nonbank lender to property builders. “The acquisition marks the first resolution of a defaulting NBFC outside India’s Insolvency and Bankruptcy Code (IBC) and represents Ares SSG’s single largest investment in India to date,” said Ares SSG.
“Funds managed by Ares SSG, in partnership with Assets Care and Reconstruction Enterprise Ltd. (“ACRE”), a leading asset reconstruction company, have acquired all outstanding loans and investments from Altico for a consideration of approximately Rs 2,800 crore ($380 million), in line with its original resolution plan submitted in February 2020. Ares SSG’s plan has ensured a full resolution while also maximizing the value of the underlying assets for creditors, despite the adverse impact of the pandemic on several of Altico’s portfolio companies,” added the Hong Kong-based hedge fund.
Altico Capital’s key lenders include SBI, Bank of Barod, Yes Bank, ACRE ARC and AB Finance. Ares SSG recognizes the challenges Altico employees have faced during this period of uncertainty which has been further compounded by the pandemic. Ares SSG values their commitment as Altico’s entire team will continue to assist in servicing the existing portfolio.