K Raheja Realty is one of the seven prospective bidders who have expressed interest for bankrupt Asian Hotels (West), which operates Hyatt Regency hotel in Mumbai, sources said.
Other prospective applicants include Pune-based Panchshil group, Jindal Steel and Power and an overseas company as well. A source within K Raheja Realty confirmed that the group had expressed interest and would also be shortly submitting its resolution plan. Its aim is to run the hotel.
On March 6, at a meeting of the comany’s lenders the last date for the submission of resolution plans by the applicants was extended to April 7, from the originally scheduled date of March 10. The last date for submitting expressions of interest was January 13.
Bankruptcy proceedings were initiated against the company last year, on a plea filed by the main lender YES Bank. The total claims are not expected to exceed over ₹350 crore, pending verficiation. Of the total claims of nearly ₹340 crore about ₹300 crore have been admitted and ₹40 crore of claims are undergoing verification.
The hotel, situated near the Sahar international airport, occupies prime real estate property in Mumbai, and is one of the reasons why it is attracting considerable interest from applicants.
Yes Bank, the original petitioner, has since assigned its financial debt to JM Financial ARC, which in turn has assigned the debt to UV Asset Reconstruction Company, which is the main claimant with dues of over ₹292 crore. The other big financial creditor is PTC India Financial Services with dues of over ₹3 crore.
Hyatt Regency in Mumbai, a 401-room five-star deluxe hotel, was a victim of the lockdown imposed across the country to stem the spread of COVID-19. As cash flows dried up, it was unable to pay its vendors, creditors and employees and ultimately suspended operations in June 2021 due to a lack of funds.
K Raheja Realty, which builds residences and commercial projects across Mumbai, Pune, Chennai, Bengaluru and Coimbatore has also developed hotels such as Courtyard by Marriott in Chennai, The Carlton in Kodaikanal, while in Mumbai it has hotels such as The Retreat Hotel & Convention Centre, Ramada Plaza Palm Grove and JW Marriott.
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