The promoters of Robust Hotels are pouring money into revitalizing the bankrupt five-star Hyatt in Mumbai and plan to take over the hotel, according to a deal with the former promoters.
The Saraf Group, the promoter of Robust Hotels, owns about 18% of West, the operator of the Hyatt Regency in Mumbai.
Under the terms of the agreement between Saraf Group and the former founders of Asia Hotels Group, Sandeep Gupta and Sudhir Gupta, Saraf Group will make an advance payment of Rs. other fee. There is no discount for the capital infusion as this is more or less the amount requested by all classes of creditors.
The funds will also be used to cover the costs of reversing hotel suspensions in Asia and regulating other statutory compliance.
The agreement also provides for Saraf Group to have the option to acquire the Hyatt Regency Mumbai from its existing promoters after exiting bankruptcy court and lifting the suspension. Currently, Sandeep Gupta holds a 45% stake in Asia Hotels, while Sudhir Gupta holds around 25%.
If the Saraf Group exercises its option to acquire the hotel, the funds they inject will be adjusted according to the purchase price.
Once the company emerges from bankruptcy court, its board will be restructured and both the Saraf group and the Sandeep Gupta group will have the right to nominate directors for the board.
Robust Hotels is operated by the Saraf Group, a listed entity. The group operates a number of hotels across the country, including Hyatt properties in Kolkata, Nepal, New Delhi and Ahmedabad, according to its website.
Apart from financial creditors and suppliers, nearly 300 employees and workers are claiming Rs 180 crore owed to the hotel company.
