Real Estate
NCLT Approves ₹730 Crore Revival Proposal for Rajesh Hotels
The National Company Law Tribunal has approved a revival plan for Rajesh Business & Leisure Hotels. A consortium of Rare Asset Reconstruction Company and Check-Inn Hotels will acquire the company with a ₹730 crore proposal.
Mumbai, May 5: The NCLT has approved Rajesh Business & Leisure Hotels' resolution plan to acquire a consortium of Rare ARC and Check-Inn Hotels, a subsidiary of realty developer Shree Naman Group.
Financial Details
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Company liabilities: Over ₹1,345 crore
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Revival plan value: ₹730 crore
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Upfront payment: Approximately ₹479 crore
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Secured creditors settlement: ₹461 crore (full and final)
Background
In April 2022, the company was admitted under Corporate Insolvency Resolution Process following a petition by ICICI Bank over a default of ₹311 crore.
Creditor Support
Before the tribunal's approval, the plan received unanimous backing from the committee of creditors.
Settlement Terms
Secured financial creditors are set to receive ₹461 crore as full and final settlement of their dues under the approved plan.