NCLT Greenlights ₹730 Crore Revival Plan for Rajesh Hotels
NCLT approves Rs 730 crore revival proposal for Rajesh Hotels
The Economic Times
Image: The Economic Times
The National Company Law Tribunal (NCLT) has approved a ₹730 crore ($88 million USD) revival proposal for Rajesh Business & Leisure Hotels, which is facing liabilities exceeding ₹1,345 crore ($162 million USD). The plan was unanimously supported by creditors and includes an upfront payment of ₹479 crore ($58 million USD).
- 01NCLT approved a ₹730 crore revival plan for Rajesh Hotels.
- 02The company has liabilities over ₹1,345 crore.
- 03The revival plan received unanimous backing from creditors.
- 04An upfront payment of ₹479 crore will be made.
- 05Secured creditors will receive ₹461 crore as settlement.
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The National Company Law Tribunal (NCLT) has sanctioned a revival plan worth ₹730 crore (approximately $88 million USD) for Rajesh Business & Leisure Hotels, which is grappling with liabilities exceeding ₹1,345 crore (around $162 million USD). This decision follows a petition by ICICI Bank due to a default of ₹311 crore. The approved plan, which garnered unanimous support from the committee of creditors, includes an upfront payment of about ₹479 crore (roughly $58 million USD). Secured financial creditors are set to receive ₹461 crore as a full and final settlement of their dues, marking a significant step towards the company's financial recovery.
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The approval of the revival plan is crucial for Rajesh Hotels, potentially safeguarding jobs and stabilizing operations, which could positively influence the local economy.
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