Five bidders in fray for Viceroy Hotels

The resolution professional handling the Corporate Insolvency Resolution Process (CIRP) of the Hyderabad-based Viceroy Hotels has received five resolution plans on 20 August 2022 (the last day for submission of Resolution plans as per deadline stipulated in latest Form-G), the company informed the stock exchanges.

Opening of resolution plans as received is scheduled on 22 August 2022. After review of these resolution plans, the Resolution Professional shall present compliant resolution plans to the Committee of Creditors for further consideration.

Viceroy Hotels has been undergoing the Corporate Insolvency Resolution Process (CIRP) since 2018 is yet to see a closure as the process continues forever.

Asset Reconstruction Company (India) Limited, or ARCIL, had filed the insolvency petition against it for defaulting on payment of Rs 321 crore.

The Hyderabad bench of the National Company Law Tribunal (NCLT) through an order dated 12 March 2018 has ordered initiation of Corporate Insolvency Resolution Process of Viceroy Hotels Limited. Later the NCLT through its order dated 08 March 2019 extended the CIRP period by another 20 days from 7 March 2019. 

However, delays in the process began set in early in the process over the issue of inclusion of Mahal Hotel Private Limited in the list of financial creditors.

ARCIL has opposed inclusion of Mahal Hotel in the CoC saying the latter does not qualify as a financial creditor. However, in July 2018 the then Resolution Professional Koteswara Rao Karuchola included Mahal Hotels name in the list of Financial Creditors.

The issue reached the National Company Appellate Tribunal (NCLAT), where the tribunal through an order in November 2019 forced the reconstitution of the committee of creditors, a process that got competed in December 2020.  

Meanwhile, on the plea of ARCIL, the NCLT in April changed the Resolution Professional — Koteswara Rao Karuchola – and appointed GV Narashimha Rao as the new RP.

Viceroy Hotels Limited operates 297 Room Hotel under the Brand of “Marriott”, 120 Room Hotel under the Brand of “Courtyard Marriott” in Hyderabad and 56 Room Hotel in Himayatnagar, Hyderabad.

Viceroy Hotels Limited is also a Holding company of Cafe D Lake Private Limited which owns Fine Dine Restaurants in the name and style of “Minerva Coffee Shop” and Fine Dine Bars in the name and Style of “Bluefox”. The Company is presently owning Fine Dine Restaurants and Bars in Hyderabad and Vijayawada.

Viceroy Hotels Limited entered into an agreement with Marriott International Inc, USA in 2003 for franchise, marketing and operations under the brand of “Marriott” for a period of 20years.

Also Read: India’s top 25 willful defaulters include Gitanajli Gems, Era Infra