Devvrat Developers to acquire Delhi-based Leading Hotels for Rs 219 crore

Mumbai-based Devvrat Developers Private Ltd has got the NCLT nod to acquire the assets of Leading Hotels Ltd for Rs 219 crore. The Delhi bench of the National Company Law Tribunal (NCLT) recently approved the Rs 219 crore resolution plan submitted by the Mumbai-based developer. The lenders of Leading Hotels had earlier approved Devvrat Developers by 88.77%.

As per the resolution plan, the successful resolution applicant has offered to pay Rs 162 crore to the secured financial creditors, which is 95% of their admitted claims. The amount would be paid over five years. As per the plan, the secured financial creditors would be 16.20 lakh NCDs worth Rs 1,000 each. The NCDs will be redeemable within five years of issuance.

Unsecured financial creditors would receive Rs 54 crore, 29% of their admitted claims of Rs 187 crore. This amount will be paid with 60 days from the day of approval of the resolution plan. Operational creditors, including workmen and employees, receive Rs 1.35 crore against their admitted claims of Rs 4.10 crore.

The total resolution amount of Rs 219 crore is 60% of the total admitted claims of Rs 364 crore.

Devvrat Developers will infuse an initial amount of Rs 4.5 crore in Leading Hotels for payment of CIRP cost and to operational creditors. The initial infusion and payment of Rs 54 crore to unsecured creditors would be done through the successful resolution applicant’s own fund.

The entire exiting share capital of the corporate debtor (Leading Hotels) will be cancelled and it will issue 45 lakh equity shares of Rs 10 each to the Devvrat Developers.

It must be noted that Leading Hotels was dragged to insolvency court by financial creditor Citron Strategies Pvt Ltd in June 2021 after the former defaulted on a payment of Rs 1.34 crore.

Leading Hotels is engaged in running hotel, resorts, motels, restaurants and cafes. The successful resolution applicant has around 30 years of experience in developing and redeveloping real estate projects across cities.

Also Read: Harvest Hotels goes to Serveall Land Developers for Rs 107 crore