Timeline for CIRP of Asian Hotels (West) extended by 90 days
The timeline for completion of the Corporate Insolvency Resolution Process (CIRP) of Asian Hotels (West) has been extended till 13 June 2023 after the Delhi bench of the NCLT gave a nod to the extension.
The company informed the exchanges that in accordance with the approval of the Committee of Creditors (CoC) in its 8th meeting convened on 6 March 2023, an application was filed by the resolution professional before the NCLT seeking extension of period of Corporate Insolvency Resolution Process of Asian Hotels (West) Limited by 90 days from 15 March 2023 (expiry of 180 days from insolvency commencement date i.e. 16 September 2022), for completion of CIRP of the Company, under Section 12 of the Insolvency & Bankruptcy Code 2016. Sapan Mohan Garg is the resolution professional in the case.
The insolvency proceeding against Asian Hotels (West) was initiated in September 2022 by JM Financial Asset Reconstruction Company for the former’s failure to pay an amount of Rs 264 crore. The original lender Yes Bank had assigned the debt to 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 and by virtue of the UV ARC has now 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 8 January 2007. The company was converted into a Public Limited Company and the subsequently the name was changed to Chillwinds Hotels Limited with effect from 25 August 2007. 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 & creditors and Vardhman Hotels Limited (Transferee Company – II) now known as Asian Hotels (East) Limited and its shareholders which became effective on 11 February 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 12 February 2010 pursuant to the scheme.
The company had posted revenue of Rs 143 crore and net profit of 3.6 crore in 2019-20. 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 lockdown during Covid-19 in 2020 and 2021.
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