Sanjeev Agrawal, CEO, Altico Capital, has tendered his resignation from the company citing personal reasons.
In September 2019, Agrawal, who was previously the COO of the firm, was requested by the Altico Board to continue at the firm to infuse stability and was subsequently appointed as the CEO of the firm with the full backing of the board in October 2019. Recently he was asked to consider extending his contract with the firm for the period beyond March 31, 2020 to which he expressed his inability citing personal reasons. Subsequent to Agarwal’s resignation, all one-time allowances granted to him would cease to vest.
"The Altico Board has accepted Agrawal’s resignation and is appreciative of the progress made under his leadership, on addressing the issues faced by the firm post the default in September 2019. The firm remains committed on working towards a resolution at the earliest," the company said in a statement.
As per the report, Altico Capital has been facing pressure of accelerated debt repayment from some lenders and also experiencing difficulty in mobilizing fresh funds. To come out of this financial crisis, the NBFC seeks some time and plans to restructure its debt.
This was followed by a rating downgrade by India Ratings from AA- to A+ with negative outlook on 3 September, citing weak operating environment and diluted liquidity buffers. The NBFC received recall notices worth a total of ₹1,056 crore from its lenders since then.
In the interim, day to day management of the firm will be conducted by the Chief Financial Officer, General Counsel and Chief Credit Officer, reporting into the board. "The company remains committed to appointing new leadership, establishing a resolution plan with all stakeholders and building a long term and aspirational real estate lending platform in the country,"
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