The Saraf group, promoters of Robust Hotels, who are infusing funds to revive the five-star bankrupt hotel Hyatt Regency in Mumbai, plan to take over the hotel, according to an agreement with the former promoters.

The Saraf group owns about 18 per cent in Asian Hotels (West), the operating company of the Hyatt Regency in Mumbai.

Under the terms of the agreement with the former founders of Asian Hotels - Sandeep Gupta and Sudhir Gupta - the Saraf group will advance Rs 390 crore that will be used to pay all creditors, all the costs incurred in the bankruptcy proceedings, and any other expenses to withdraw the company from the insolvency process. The infusion of funds is without any haircuts, as this is more or less the amount that is being claimed by all categories of creditors.

The funds will also be used to pay expenses for revoking the trading suspension of Asian Hotels and regularising other statutory compliances.

Also read: Six applicants submit resolution plans for bankrupt Hyatt Regency

The agreement states that the Saraf group will have the option to acquire Hyatt Regency, Mumbai from its current promoters after its withdrawal from the insolvency court and revocation of the trading suspension. Currently, Sandeep Gupta holds 45 per cent stake in Asian Hotels, while Sudhir Gupta holds about 25 per cent.

If the Saraf group exercises the option to acquire the hotel, then the funds infused by them will be adjusted against the acquisition price.

Once the company is out of bankruptcy court, its board will be reconstituted, both the Saraf Group and the Sandeep Gupta group will be entitled to nominate directors on the board.

Robust Hotels is a listed entity. According to its website, the group operates a number of hotels across the country, including the Hyatt Regency in Kolkata, Nepal, New Delhi and Ahmedabad.

Apart from the financial creditors and vendors, close to 300 employees and workmen are claiming dues of Rs 18 crore from the hotel company.