The National Company Law Tribunal has approved Hotel Horizon’s acquisition by the consortium of Oberoi Realty, Shree Naman Developers and JM Financial Properties and Holdings.
The company has admitted liabilities of Rs 1,293 crore, whereas the successful bidder’s plan proposes to shell out Rs 919 crore, resulting in about 74% recovery for the lenders of the debt-laden company. Before the tribunal’s approval, the company’s secured creditors had unanimously approved the resolution plan.
Hotel Horizon’s key asset is a prime 1.85-acre land parcel in Mumbai’s plush Juhu area, overlooking the Arabian Sea.
The Mumbai bench of the National Company Law Tribunal (NCLT), in its January 29 order, while approving the revival plan, has said that it shall be binding on the corporate debtor (company), its employees, members, creditors, including the central government, any state government or any local authority to whom a debt in respect of the payment of dues arising under any law for the time being in force is due, guarantors and other stakeholders involved in the resolution plan.
The erstwhile director of the Hotel Horizon Pvt Ltd, Sagar Sharma, has challenged the NCLT's order at the National Company Law Appellate Tribunal (NCLAT).
The appellate tribunal, in its order of February 5, clarified that any action taken by the lenders or successful bidders shall be subject to its final ruling and clarified that no equity shall be created in favour of the respondent (successful bidders) by any distribution of the amount or any steps taken thereunder. The NCLAT will hear the matter further on February 25.
Suspended Directors of the Hotel Horizon were represented by Vaibhav Gaggar Sr. Advocate, Sahil Monga, Akash Agarwal, Simran Shadija and Arjun Tyagi.
The consortium reserves the flexibility to implement the acquisition either directly or through a special purpose vehicle (SPV) formed for this purpose.
According to regulatory filings, HHPL was incorporated in 2004 and is engaged in developing a retail-cum-hospitality project at Juhu. The company’s latest available financial disclosures indicate a turnover of Rs 0.46 crore in 2014-15 and a net worth of Rs 78.5 crore.
Hotel Horizon Private Limited was admitted to insolvency under the IBC framework, with accumulated debt liabilities prompting a distressed sale.
The asset attracted interest for its location value despite limited operational revenue in recent years. As part of the transaction structure, the consortium or the SPV will subscribe to Rs 1 crore worth of fresh shares in HHPL, giving it complete ownership.
The plan includes provisions for securing necessary permissions from relevant authorities and sets out the framework for full control and 100% shareholding in HHPL upon completion.
The company has admitted liabilities of Rs 1,293 crore, whereas the successful bidder’s plan proposes to shell out Rs 919 crore, resulting in about 74% recovery for the lenders of the debt-laden company. Before the tribunal’s approval, the company’s secured creditors had unanimously approved the resolution plan.
Hotel Horizon’s key asset is a prime 1.85-acre land parcel in Mumbai’s plush Juhu area, overlooking the Arabian Sea.
The Mumbai bench of the National Company Law Tribunal (NCLT), in its January 29 order, while approving the revival plan, has said that it shall be binding on the corporate debtor (company), its employees, members, creditors, including the central government, any state government or any local authority to whom a debt in respect of the payment of dues arising under any law for the time being in force is due, guarantors and other stakeholders involved in the resolution plan.
The erstwhile director of the Hotel Horizon Pvt Ltd, Sagar Sharma, has challenged the NCLT's order at the National Company Law Appellate Tribunal (NCLAT).
The appellate tribunal, in its order of February 5, clarified that any action taken by the lenders or successful bidders shall be subject to its final ruling and clarified that no equity shall be created in favour of the respondent (successful bidders) by any distribution of the amount or any steps taken thereunder. The NCLAT will hear the matter further on February 25.
Suspended Directors of the Hotel Horizon were represented by Vaibhav Gaggar Sr. Advocate, Sahil Monga, Akash Agarwal, Simran Shadija and Arjun Tyagi.
The consortium reserves the flexibility to implement the acquisition either directly or through a special purpose vehicle (SPV) formed for this purpose.
According to regulatory filings, HHPL was incorporated in 2004 and is engaged in developing a retail-cum-hospitality project at Juhu. The company’s latest available financial disclosures indicate a turnover of Rs 0.46 crore in 2014-15 and a net worth of Rs 78.5 crore.
Hotel Horizon Private Limited was admitted to insolvency under the IBC framework, with accumulated debt liabilities prompting a distressed sale.
The asset attracted interest for its location value despite limited operational revenue in recent years. As part of the transaction structure, the consortium or the SPV will subscribe to Rs 1 crore worth of fresh shares in HHPL, giving it complete ownership.
The plan includes provisions for securing necessary permissions from relevant authorities and sets out the framework for full control and 100% shareholding in HHPL upon completion.