WL Ross, India's HDFC to invest in Indian corporate restructurings

By Caroline Salls

Pittsburgh, Oct. 26 - WL Ross & Co. LLC and India's Housing Development Finance Corp. Ltd. have teamed up to invest in Indian corporate restructurings and turnarounds, according to a WL Ross news release.

"India's distressed debt market is unusual in that there are tens of billions of dollars of distressed loans in an economy that is growing at more than 7% per annum," WL Ross chairman and chief executive officer Wilbur L. Ross Jr. said in the release.

"India has new restructuring laws, a well-developed legal system and political will to implement Basel II."

"India has the largest non-performing assets market in Asia, after Japan and China," WL Ross managing director responsible for India affairs Ranjeet Nabha said in the release.

"Increased loan loss provisioning by Indian financial institutions cushions them from the impact of non-performing assets, but these assets need to be acquired and restructured to allow these companies to thrive and grow.

"Our entry will help broaden India's capital markets and provide the skills necessary to turn these companies around."

HDFC was incorporated in 1977 as India's first specialized housing finance institution and has financed over 2.6 million properties, now with more than Rs 42,000 crores of assets.

WL Ross is a New York-based private equity investor in corporate restructurings.

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