The resolution plan for Viceroy Bangalore Hotels Pvt Ltd., submitted by gutkha producer Dharampal Satyapal Limited (DS Group), has been accepted by the NCLT.
In comparison to their total accepted claims of Rs 1,115 crore, secured financial creditors receive Rs 291 crore of the Rs 300 crore supplied by the successful resolution applicant. Out of their acknowledged claims of Rs 16.67 crore, the operating creditors receive Rs 9 crore. According to the agreed resolution plan, unsecured creditors who had acknowledged claims totaling Rs 29.6 crore received nothing. All of the creditors of Viceroy Bangalore Hotels were due Rs. 1,163 crore.
By judgment dated August 5, 2022, the NCLT allowed the insolvency proceedings against Viceroy Bangalore Hotels Pvt Ltd that Edelweiss Assets Reconstruction Company Limited had filed under Section 7 of the IBC. The Interim Resolution Professional (IRP), Kuresh Hatim Khambati, has been appointed. Later, the IRP was officially recognized as the Resolution Professional during the first COC meeting on September 20.
Edelweiss Assets Reconstruction Company Limited was responsible for Rs 821.5 crore, or about 74%, of the Rs 1,115 crore payable to the secured creditors. The rest was accounted for by Vistra ITCL.
A public limited company that was established in 1929 and has its registered office at 98, Okhla Industrial Estate, Phase-III, New Delhi, South Delhi, 110 020, is the resolution applicant. The DS Group (Dharmapal Satyapal Group) is a multi-business corporation that ranks among the top FMCG conglomerates and has a significant presence both in India and abroad.
The DS Group owns and employs sufficient staff to run the following hotels through its subsidiary and partner businesses. The Raddison Blu in Guwahati, the Crown Plaza at Jim Corbett National Park in Jaipur, the Holiday Inn Express near the airport in Kolkata, and The Manu Maharani in Nainital are all part of the Group. With no debt, all hotels are profitable.
The DS Group has a net value of about Rs. 423,700.44 lakhs and an annual profit of about Rs. 600 crores. The Resolution Applicant also has enough liquid cash flow to carry out the Resolution Plan.
The amount specified in the resolution plan would be raised by DS Group internally and distributed among the different Viceroy Bangalore Hotels Pvt Ltd stakeholders. The resolution applicant may further provide working capital for ongoing operations using any required methods, including debt, in addition to the sums mentioned above. The resolution applicant may also make arrangements for financing essential capital expenditures using whatever measures may be required, including borrowing money.
According to the Management Contract signed with Marriott International Inc., USA for the Renaissance Brand, Viceroy Bangalore Hotels began commercial operations of a 5-star hotel in Race Course Loop Lane, Bangalore, Karnataka.
The hotel’s 277 rooms include 246 opulent double rooms, 30 suites, and 1 presidential suite. Other amenities include all-day dining, specialty restaurants, an executive lounge, a banquet hall/ballroom, a conference room, a business lounge/center, a health club & spa, a swimming pool, and a parking garage that was constructed to international standards under Marriott International Inc.’s “Renaissance” brand.
