Hedge funds Cerberus, SSG compete over Indian shadow bank Altico
Summary
New York-based hedge fund Cerberus submitted a bid for ailing Altico last week, after getting an extension from an initial deadline in the previous week, said people familiar with the matter. The creditor-run debt restructuring at Altico is being keenly followed as a barometer of India’s shadow banking crisis, as well as a potential opportunity for hedge funds and banks trading discounted debt. Lenders discussed all alternatives at a meeting on Jan. 30, the people said, asking not to be identified because the matter is private. The final field has narrowed since the restructuring process kicked off in September, with other bidders including Apollo Capital Management and Kotak Investment Advisers pulling out. A Cerberus spokeswoman and an Altico spokesman declined to comment.