DS Group acquires Viceroy Bangalore Hotels through insolvency process
The NCLT has approved the Rs 300-crore resolution plan by Gutkha manufacturer Dharampal Satyapal Limited (DS Group) for Viceroy Bangalore Hotels Pvt Ltd.
Of the Rs 300 crore provided by the successful resolution applicant, Rs 291 crore goes to secured financial creditors against their total admitted claims of Rs 1,115 crore. The operational creditors gets Rs 9 crore out of their admitted claims of Rs 16.67 crore. Unsecured financial creditors, who had admitted claims of Rs 29.6 crore, gets nothing as per the approved resolution plan. Viceroy Bangalore Hotels owed Rs 1,163 crore to all its creditors.
The insolvency proceedings against Viceroy Bangalore Hotels Pvt Ltd was filed by Edelweiss Assets Reconstruction Company Limited under Section 7 of IBC, and was admitted by this NCLT through an order dated 05 August 2022. Kuresh Hatim Khambati was appointed as the Interim Resolution Professional (IRP). Later, in the 1st COC meeting held on 20 September, the IRP was confirmed as Resolution Professional.
Of the Rs 1,115 crore owed to the secured financial creditors, Edelweiss Assets Reconstruction Company Limited accounted for Rs 821.5 crore, or almost 74% of the total financial debt. Vistra ITCL accounted for the rest.
About the Resolution Applicant
The Resolution Applicant is a Public Limited Company, founded in the year 1929, having its Registered Office at 98, Okhla Industrial Estate, Phase-III, New Delhi, South Delhi, 110 020. The DS Group (Dharmapal Satyapal Group) is a multi-business Corporation and one of the leading FMCG conglomerate with strong Indian and International presence.
The DS Group, through its subsidiary/associate companies owns and manages the following hotels internally and sufficient manpower. The Group has Raddison Blu in Guwahati, Crown Plaza in Jaipur Namah at Jim Corbett National Park, ‘Holiday Inn Express’ at Kolkata Airport and The Manu Maharani in Nainital. All hotels are profitable with zero debt.
DS Group has annual profit to the extent of Rs.600 crores and net worth is around Rs.423,700.44 lakhs. Further, the Resolution Applicant has sufficient liquid cash flow to implement the Resolution Plan.
Sources of Fund
DS Group will be arrange the fund provided for in the resolution plan from its internal sources and break-up among various stakeholders of the Viceroy Bangalore Hotels Pvt Ltd. In addition to the amounts set out above, the resolution applicant may arrange working capital for continuity of operations through such means as may be necessary including debt. The Resolution Applicant may also arrange funds for necessary capital expenditure through such means as may be necessary including debt.
About the Corporate Debtor
Viceroy Bangalore Hotels started commercial operations of a 5-star hotel at Race Course Loop Lane, Bangalore, Karnataka as per the Management Contract signed with Marriot International Inc, USA for Renaissance Brand. The hotel has a total of 277 rooms comprising 246 luxury double bed rooms, 30 suites and 1 presidential suit, all day dining, specialty restaurants, executive lounge, banquet hall/ball room, conference hall, business lounge/centre, health club & spa, swimming pool and car parking facility built to international standards of “Renaissance” brand of Marriott International Inc. USA
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