Harvest Hotels goes to Serveall Land Developers for Rs 107 crore

The principal bench of the National Company Law Tribunal (NCLT), New Delhi, has approved the Rs 107 crore resolution plan by Serveall Land Developers for resolution of Harvest Hotels and Services Apartments Private Ltd. The resolution plan was earlier approved by the Committee of Creditors (CoC) by 100% vote share.

As per the resolution plan, the secured financial creditors of Harvest Hotels and Services Apartments will receive an amount of Rs 81 crore in two tranches against their admitted claims of Rs 209.20 crore. Of the Rs 81 crore, Rs 10 crore will be paid within 45 days and another Rs 71 crore would be paid within 180 days. There’s also a provision of 9% per annum interest from 45 days till the payment of the amount. Operational creditors would receive Rs 60 lakh against their total admitted claims of Rs 22 crore. The resolution plan also provides for a Rs 25 crore for working capital needs of Harvest Hotels and Services Apartments.

The resolution plan also proposes to pay the actual unpaid CIRP costs upfront before any payment would be made to any of the creditors of the company. An amount of Rs. 50 lakh is proposed to be paid within 45 days of the effective date. However, it is clarified that in case actual CIRP costs are more than Rs 50 lakhs, the deficit shall be paid out of the infusions proposed towards working capital requirements.

The timeline proposed to implement the resolution plan is 360 days.

With regards to Sources of funds to provide payments proposed, the resolution professional has submitted before the NCLT that Serveall Land Developers Private Limited has a net worth of Rs 74.59 crore. Besides this the successful resolution applicant as well as its director and promoter have sufficient resources to induct more funds in the company.

The resolution applicant (Serveall Land Developers) proposes that the entire share capital of the Corporate Debtor will be cancelled on the date falling 45 days of the effective date. Rs. 50 lakh will be considered as equity infusion. i.e. 5,00,000 equity shares of face value of Rs. 10 each.

The insolvency process against Harvest Hotels and Services Apartments was initiated by Arcil in October 2022 for defaulting on a payment of Rs 187.5 crore.

Also See: Era Infra gets lifeline as NCLT approves SA Infrastructure’s resolution plan