Oberoi Realty-led consortium completes acquisition of Hotel Horizon for Rs 920 crore

Oberoi Realty Limited on Thursday said that the consortium led by it has completed the implementation of the resolution plan for Hotel Horizon Private Limited under the Insolvency and Bankruptcy Code (IBC), following payment of the resolution amount of Rs 919.25 crore.

The consortium — comprising Oberoi Realty, Shree Naman Developers Private Limited and JM Financial Properties and Holdings Limited — had received approval from the Mumbai bench of the National Company Law Tribunal (NCLT) for its resolution plan in January this year.

In a regulatory filing, Oberoi Realty said the consortium completed the implementation of the resolution plan on May 7, which was designated as the “transfer date” under the approved plan. The company said the entire resolution money, including the acquisition consideration and other payable amounts under the plan, has been paid.

Following the transaction, Oberoi Realty now holds a 49.999% stake in Hotel Horizon Private Limited and has infused Rs 460 crore into the company. The infusion includes equity subscription worth about Rs 50 lakh through acquisition of 49,999 equity shares at par value, while the remaining amount has been extended as unsecured loans.

The company further said that the monitoring committee overseeing the implementation of the resolution plan ceased to exist with effect from May 7. The board of directors of Hotel Horizon has now been reconstituted with nominees identified by the consortium members, and management control of the company has formally passed on to the consortium in line with the approved resolution plan.

Earlier in March, the NCLT had granted the consortium an extension till May 7 for payment of the resolution amount after approving an application seeking additional time to complete the transaction.

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