Private equity firm Blackstone Group has secured approval from the Indian court to buy Trident hotel in Hyderabad for $81.7m.
This is the private equity firm’s first deal in the country under the bankruptcy law, reported Economic Times.
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The approval was given to Blackstone group by the National Company Law Tribunal last week.
This approval comes over a year after Trident’s creditors approved the PE firm’s offer.
To clear the debt of Golden Jubilee Pvt Ltd, which owns Trident, Blackstone offered to inject Rs3.84bn ($71.1m).
Trident hotel is managed by EIH, which operates Oberoi and Trident hotel chains.
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By GlobalDataBlackstone has also made a commitment to pump an additional Rs 1.80bn ($33.33m) as capital expenditure.
The PE firm’s offer will enable the creditors to get back about 37% of the amount owed to them.
As on June 2018, Golden Jubilee owed about Rs 9.70bn ($179.63m) to its creditors.
Besides Blackstone, Sattva Group, a Bengaluru-based developer, was also eyeing to acquire the property.
Core Hotels owns 84% of Golden Jubilee Hotels, while EIH owns 16%.
Trident Hotel is a five star hotel with 324 rooms. It is located in the IT corridor of Hyderabad.
It hosted Ivanka Trump when she participated in the Global Entrepreneurship Summit in 2017.
