A consortium of banks led by Bank of Maharashtra (BoM) has approved the one-time restructuring (OTR) of credit facilities availed by Asian Hotels (North) Ltd. Five banks including BoM, Punjab National Bank, YES Bank, IndusInd Bank and Axis Bank, had collectively sanctioned ₹717.61 crore, as per the hotel’s regulatory filing. Of the sanctioned amount, the outstanding loan amount was ₹ 669.64 crore as on March 1, 2020.
Asian Hotels (North) said it had filed an application regarding OTR of its credit facilities with all the lenders. Subsequently, invocation of OTR was done on December 9, 2020, and Inter Creditor Agreement (ICA) was signed on December 23, 2020, by all the lenders, it added.
Also read: Asian Hotels (North) Limited – Disclosures under Reg. 31(1) and 31(2) of SEBI (SAST) Regulations, 2011
An OTR usually entails extension in repayment of principal, reduction in interest rates and conversion of accrued interest into funded interest term loans. “Lead Banker Bank of Maharashtra had issued the letter…by which they have intimated us and other lenders of consortium regarding the approval of one-time restructuring of credit facilities availed by our company. “…Our one-time restructuring plan has been approved and implemented by the consortium of bankers, and the same has been updated by the company in its board meeting held on 5th July 2021,” the company said.
Extension of SCOD
As per the regulatory filing, the Company had also filed for extension in SCOD (scheduled commercial operation date)/restructuring for its subsidiary, Leading Hotels Ltd, to Yes Bank. The bank has declined the extension, it added.
Meanwhile, NCLT passed an order on June 25 for initiating Corporate Insolvency Resolution Process for the company’s material subsidiary, Leading Hotels Ltd, Asian Hotels (North) said in a separate filing. Resolution Professional has been appointed and the CIRP process has been started, it added.