Forum Gandhi |
Mumbai, May 8
May 08, 2022
The ARC is likely to move NCLT this month over unpaid dues of nearly ₹1,000 crore
Edelweiss ARC is set to file an insolvency petition against Marriott Group’s Renaissance Bangalore Race Course Hotel over unpaid dues which stand at approximately ₹1,000 crore.
The five-star hotel is still operational. However, according to two people in the know, Edelweiss ARC has decided to drag it to the insolvency court. “Renaissance has been given enough time to repay its dues. However, it has not been able to do so. After the recent default, Edelweiss ARC has decided to take this step,” the source said..
Marriott is listed on Nasdaq. In India, Marriott International has approximately 30 brands. According to its annual report for 2021, Marriott has 173 hotels globally under the Renaissance brand.
The ARC is likely to file a petition in the National Company Law Tribunal (NCLT) this month. It will file an application under Section 7 of the Indian Bankruptcy Court. Section 7 petition is for the initiation of corporate insolvency resolution process by a financial creditor(s).
Renaissance, its parent company Marriott and Edelweiss ARC did not offer a comment.
According to one of the people quoted above, “The Covid-19 pandemic has taken a hit on the company just like any other hotel. Not every hospitality firm was able to seek respite from the ECGLS scheme.” The Renaissance Bangalore Race Course hotel is a luxury property in the heart of Bengaluru. It has 276 rooms and is spread across 6,900 sq ft. The 21-storey hotel was inaugurated in 2018.
Over the past few years, multiple renowned hotels including Appu Hotel, Hotel Leela, Golden Jubilee Hotels, and Trident Hotels among others have been dragged to the insolvency court. However, not many have seen a suitable resolution. Hospitality industry was among the hardest hit during the pandemic with travel and tourism coming to a halt for nearly two years
May 08, 2022