India's Religare Finvest may see 49% haircut with rare debt recast

Its lenders have reportedly agreed to write off almost half of its $808m debt.

Bloomberg reports that creditors to Religare Finvest, an Indian shadow financier once controlled by former billionaires Shivinder Singh and Malvinder Singh, are finalizing a rare debt recast in the sector by writing off almost half of the company’s loans.

Lenders to Religare Finvest, including State Bank of India, have agreed to take a 49% haircut on its $808m (58b rupees) debt, according to people familiar with the matter said. The restructuring may be implemented as early as the end of January, they said.

Any debt restructuring at Religare Finvest, which is being bought by TCG Advisory Services , would be the first amongst peers since the credit market squeeze started in 2018.

Other shadow lenders such as Reliance Home Finance and Altico Capital India are struggling to rework their debt, whilst mortgage financier Dewan Housing Finance Corp is facing bankruptcy.

Here’s more from Bloomberg.