Six bidders in race to acquire Asian Hotels (West)
The resolution professional of Asian Hotels (West) has informed the exchanges that six prospective resolution applicants have submitted resolution plans in response to the Request for Resolution Plans (RFRP) dated February 7, 2023.
The resolution professional, Sapan Mohan Garg, said that the sealed envelopes containing the resolution plans will be opened before the committee of creditors on a date that will be separately informed to the resolution applicants.
“The authorized representatives of the resolution applicants may remain present at the time of opening of respective sealed resolution plans,” the company said in an exchange filing.
The insolvency proceeding against Asian Hotels (West) was initiated in September 2022 by JM Financial Asset Reconstruction Company for the company’s failure to pay an amount of Rs 264 crore. The original lender, Yes Bank, had assigned the debt to the asset reconstruction company.
Asian Hotel (West) owes Rs 295 crore to financial creditors. JM Financial Asset Reconstruction Company has sold the loan to UV Asset Reconstruction Company, which now has the highest voting share (98.84%) in the CoC.
The company is owned 70% by Sandeep Gupta and family.
The company was originally incorporated as Chillwinds Hotels Private Limited on January 8, 2007. It was converted into a public limited company on August 25, 2007, and the name was changed to Chillwinds Hotels Limited.
In February 2010, the company entered into a scheme of arrangement and demerger with Asian Hotels Limited (Transferor Company), which is now known as Asian Hotels (North) Limited, and its shareholders and creditors. The company also entered into a scheme of arrangement with Vardhman Hotels Limited (Transferee Company – II), which is now known as Asian Hotels (East) Limited, and its shareholders.
The scheme of arrangement and demerger became effective on February 11, 2010. On the scheme becoming effective, the Mumbai undertaking of the Transferor Company was demerged and vested in the company. The name of the company was further changed to Asian Hotels (West) Limited with effect from February 12, 2010, pursuant to the scheme.
In 2019-20, the company posted revenue of Rs 143 crore and net profit of Rs 3.6 crore. In the previous year, the company had posted a net profit of Rs 27 crore on a revenue of Rs 160 crore. The company suffered from the lockdown during the COVID-19 pandemic in 2020 and 2021.
Also Read: NCLT rejects resolution plan for Viceroy Hotels; orders invitation of fresh EOIs
