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The Committee of Creditors has identified the resolution plan of CFM Asset Reconstruction Company for the Hyderabad-based hospitality chain Viceroy Hotels Ltd.
Viceroy Hotels is facing a case under the Insolvency and Banking Code 2016, and after several extensions to enable the Committee of Creditors to finalise the resolution plan, the lenders have chosen the resolution plan of Asset Reconstruction Company.
The matter relating to Viceroy Hotels’ insolvency is under consideration by the National Company Law Tribunal in Hyderabad.
The shortlisting of the resolution plan has come through after e-voting on the resolutions were put to vote at the 18th meeting of the Committee of Creditors on March 19 and concluded on March 20.
While the Committee of Creditors has put their stamp on the resolution plan submitted by CFM Asset Reconstruction Company, this is subject to a nod by NCLT.
In another petition moved by the Tourism Finance Corporation of India Ltd against Cafe D’ Lake, a Viceroy Hotels unit and a subsidiary, NCLT has appointed M Vijaya Bhaskara Rao as Interim Resoluion Professional to carry out functions in line with the Insolvency and Banking Code, to find a solution.
K Anantha Padmanabha Swamy, Member Judicial, NCLT, Hyderabad, in its order held that the Financial Creditor Tourism Finance Corporation of India Ltd has fulfilled all the requirements of law and has also proposed the name of IRP, after obtaining its written consent.
The petition has been admitted and the Corporate Insolvency Resolution process has commenced, providing a 180-day period to find a resolution plan.
While appointing the Interim Resolution Professional, the NCLT has prohibited the institution of suits or continuation of pending suits or proceedings against the corporate debtor, including execution of any judgement, decree or order in any court of law, tribunal, arbitration panel or other authority.
Recently, at the 18th Committee of Creditors meeting of the company, its members finalised the appointment of Grant Thornton India LLP to conduct a forensic audit of Viceroy Hotels Ltd.
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