IL&FS debacle, slump in real estate led to default, says Altico Capital

Management has sought signing of ICA by lenders to restructure liabilities

Realty lender Altico Capital has said lack of funding triggered by IL&FS defaults, along with the realty market softening, led to its default on repaying external loans.

“A significant strain in short-term financing markets precipitated by the September 2018 default by IL&FS created a knock-on impact on other NBFCs and the real estate sector in general,” said Altico Capital in a statement.

The company had defaulted on its interest payment of Rs 19.97 crore, on the principal of Rs 347 crore, on a loan it had taken from Mashreq Bank. 

The default has highlighted liquidity shortage in non-banking, which has