Shri Ram Multicom has revealed plans to acquire Sarga Hotels, following the approval of a resolution plan by the Kolkata bench of the National Company Law Tribunal (NCLAT) in India.
According to ETHospitalityWorld, the resolution plan is worth Rs3.01bn ($36.20m).
Shri Ram Multicom will acquire the hotel under the Insolvency and Bankruptcy Code (IBC) process, with the plan receiving support from creditors against Rs8.16bn ($98.16m) in admitted claims.
Shri Ram Multicom has experience in developing the Fairfield Hotel and operating malls and hotels in the state of Jharkhand.
Creditors Rare ARC and JC Flowers Asset Reconstruction Company have cast their votes supporting Shri Ram Multicom’s resolution plan.
This decision is expected to result in a 39% recovery for the creditors.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below formBy GlobalData
Sarga Hotels is wholly owned by Shristi Infrastructure Development Corporation, which is under the ownership of the Kanoria family.
The family is also known for their previous management of SREI Infrastructure Finance and Srei Equipment Finance.
Both companies were acquired through the IBC by the government-supported National Asset Reconstruction Company.
Sarga Hotels entered corporate insolvency in August 2020 and successfully exited a year later due to NCLAT overturning the admission order.
Shri Ram Multicom is now undergoing its second admission, initiated in February 2022.
Sarga Hotels operates The Westin Kolkata Rajarhat at the New Town locality in Kolkata.
The hotel offers a range of accommodations and dining options, including a rooftop bar and the Seasonal Tastes restaurant.
It also provides an event venue spanning 1,225m² that can accommodate up to 1,300 guests.
Among other amenities provided at the property include a fitness centre, outdoor pool, spa, gift shop, free Wi-Fi and more.