Altico Capital said on Sunday it was evaluating options to resolve its liquidity issues, following its recent default on an interest payment that was due earlier this month.
Altico, backed by Clearwater Capital Partners and Abu Dhabi Investment Council, said it defaulted on the interest payment after a rating downgrade prompted several of its lenders to recall a substantial amount of debt causing it to face a liquidity squeeze.
"This lack of capacity led Altico to pause further debt repayments in order to maintain itself as a going concern and to protect the interests of all stakeholders," the company said in a statement on Sunday.
Altico said it needed time from stakeholders to craft a plan that might "maximize asset value" and called on all stakeholders to "refrain from actions that exacerbate the liquidity problem."
"Altico has held a series of meetings with its creditors, with a view to agreeing a way forward that the company expects will allow it to meet its financial commitments," it said, adding that it had appointed financial and legal advisors to support the discussions.
Non-banking financial companies and housing finance companies have been stung by liquidity crisis after the collapse of behemoth Infrastructure Leasing & Financial Services Ltd late last year.
That has led to a contagion effect on players in the shadow banking sector with funding drying up and borrowing costs surging, and, experts say, is partly responsible for the ongoing economic slowdown in the country.
