A consortium of banks led by the Bank of Maharashtra (BoM) has completed the one-time restructuring (OTR) of credit facilities from Asian Hotels (North) Ltd. approved. Five banks, including BoM, Punjab National Bank, YES Bank, IndusInd Bank and Axis Bank, had collectively sanctioned 717.61 billion yen, according to the hotel’s official records. Of the sanctioned amount, the outstanding loan amount as of March 1, 2020 was 669.64 billion.
Asian Hotels (North) said it had applied to all lenders for OTR of its credit facilities. Subsequently, the OTR was called on December 9, 2020 and the Inter Creditor Agreement (ICA) was signed by all lenders on December 23, 2020, she added.
An OTR typically involves extending the principal repayment, lowering interest rates, and converting the accrued interest into financed term loans. “The Lead Banker Bank of Maharashtra had issued the letter informing us and other lenders of the consortium that they were approving a one-time restructuring of the credit facilities our company had drawn. “… Our one-time restructuring plan was approved and implemented by the banking consortium and updated by the company at its board meeting on July 5, 2021,” the company said.
Extension of SCOD
According to the official application, the company also had its subsidiary Leading Hotels Ltd. The bank has refused the extension, it said.
Meanwhile, on June 25, NCLT placed bankruptcy proceedings for the company’s major subsidiary, Leading Hotels Ltd, said Asian Hotels (North) in a separate filing. Resolution Professional has been appointed and the CIRP process has started, he added.