NCLT Approves Macrotech Developers’ Resolution Plan For V Hotels

India’s National Company Law Tribunal (NCLT) approved the real estate developer Macrotech Developers Ltd.’s resolution plan for bankrupt V Hotels Ltd.

The Mumbai bench of the NCLT, comprising Judicial Member Kuldip Kumar Kareer and Technical Member Anil Raj Chellan passed the order on 26 April 2024, the tribunal order showed.

The resolution plan of Macrotech, formerly Lodha Developers Ltd., was approved by 100% of the committee of creditors of V Hotels in June 2023.

“The approval of the resolution plan shall not be construed as a waiver of any future statutory obligations and shall be dealt with by the appropriate authorities in accordance with the law,” the NCLT said in its order.

Lodha Group-owned Macrotech proposes to pay a total of 900 crore rupees ($108 million) to the stakeholders of V Hotels to acquire the Mumbai-based hotel operator.

V Hotels, owner of Tulip Star, formerly known as the Centaur Hotel, received a total claim of more than 9,621 crore rupees from creditors, and the total admitted claim stood at a tad over 2,501 crore rupees.

THE BACKGROUND

The Mumbai bench of the NCLT admitted V Hotels for corporate insolvency resolution process (CIRP) via an order dated 31 May 2019 under Section 7 of the Insolvency & Bankruptcy Code.

The bankruptcy court’s order, however, was later challenged before the National Company Law Appellate Tribunal (NCLAT), which set aside the NCLT order and restored the company to its board via an order on 11 December 2019.

The NCLAT order was further appealed before the Supreme Court, and the apex court set aside the NCLAT Order via its order on 1 August 2022. Consequently, the CIRP order passed by the NCLT was restored.

The company’s primary secured lenders included Asset Reconstruction Company (India) Ltd. and Pegasus Asset Reconstruction Private Ltd.

MACROTECH’S PLAN

Macrotech, which emerged as the successful resolution applicant of V Hotels, previously said the hotel has real estate assets, which can be developed for residential and allied uses.

V Hotels, situated in the Juhu area of Mumbai, is spread around 6.1 acres of land, according to its website. The existing development is around 367 keys with restaurants, large banquets and a small retail component, but the hotel is currently non-operational, it said.

The company also owns 11 residential apartments in the western suburbs of Mumbai.

Note: $1 = 83.4063 Indian rupees

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