Bankruptcy proceedings of Asian Hotels West has been extended by 90 days to June 13 and the National Company Law Tribunal has urged the resolution professional to “work on a war footing” and complete the proceedings.
Asian Hotels West operates Hyatt Regency in Mumbai, which suspended operations in June 2021 and was admitted to insolvency in September last year. The earlier date for resolution was March 15. Earlier this month, the deadline for submitting resolution plans was also extended to April 7, from March 10.
Though the total claims are just about ₹340 crore, at stake are livelihoods of close to 300 employees who have not been paid for two years now. Employees and workmen of the company have put in claims of around ₹18 crore, of which around ₹13 crore has been admitted.
Bulk of the claims amounting to nearly ₹300 crore are from the financial creditor, which was YES Bank, which then assigned the debt to JM Financial ARC.
So far, seven entities have submitted expressions of interest for the 401-room five-star deluxe hotel that is located close to the Mumbai international airport. Among the parties are K Raheja Realty, Devvrat Developers, Panchshil Group, and Jindal Steel and Power.
Apart from the financial creditors, claims from employees and government claims are the vendors who have submitted claims worth over ₹14 crore, of which over 70 per cent is still being verified.
People aware of developments said that lingering conflicts between the resolution applicants and the promoters had the potential to further delay proceedings.
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