The case involves two appeals challenging orders dated 09.01.2024 passed by the National Company Law Tribunal (NCLT), Mumbai Bench, initiating Corporate Insolvency Resolution Process (CIRP) against two corporate debtors: GSTAAD Hotels Pvt. Ltd. and Neo Capricorn Plaza Pvt. Ltd. These companies operate JW Marriott (Bengaluru) and Crown Plaza Hotel (Pune), respectively. The lenders are common to both corporate debtors, and the lending commenced with a common Loan Agreement dated 26.12.2017. The appeals were heard together due to common issues of facts and law.
On 26.12.2017, Piramal Capital Housing Finance Ltd. extended a Term Loan Facility of Rs.600 crores to GSTAAD Hotels Pvt. Ltd. and Neo Capricorn Plaza Pvt. Ltd. GSTAAD received Rs.450 crores, Rs.50 crores as a revolving facility, and Neo Capricorn received Rs.100 crores. The interest rate was 10.5% per annum. A Cash Management Agreement (CMA) was entered on 17.01.2018, stipulating that 66% of hotel revenue would go to a Revenue Account and 34% to a Retention Account for debt service. The Loan Agreement included a Debt Service Retention Account (DSRA) of Rs.8 crores. GSTAAD Hotels serviced the loan until March 2000. After Covid-19, GSTAAD Hotels availed ECLGS Facility of Rs.98 crores on 30.12.2020 at 13% interest. Another ECLGS Facility II of Rs.65 crores was granted on
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Piramal Capital Housing Finance Ltd. entered…
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The case involves two appeals challenging orders dated 09.01.2024 passed by the National Company Law Tribunal (NCLT), Mumbai Bench, initiating Corporate Insolvency Resolution Process (CIRP) against two corporate debtors: GSTAAD Hotels Pvt. Ltd. and Neo Capricorn Plaza Pvt. Ltd. These companies operate JW Marriott (Bengaluru) and Crown Plaza Hotel (Pune), respectively. The lenders are common to both corporate debtors, and the lending commenced with a common Loan Agreement dated 26.12.2017. The appeals were heard together due to common issues of facts and law.
On 26.12.2017, Piramal Capital Housing Finance Ltd. extended a Term Loan Facility of Rs.600 crores to GSTAAD Hotels Pvt. Ltd. and Neo Capricorn Plaza Pvt. Ltd. GSTAAD received Rs.450 crores, Rs.50 crores as a revolving facility, and Neo Capricorn received Rs.100 crores. The interest rate was 10.5% per annum. A Cash Management Agreement (CMA) was entered on 17.01.2018, stipulating that 66% of hotel revenue would go to a Revenue Account and 34% to a Retention Account for debt service. The Loan Agreement included a Debt Service Retention Account (DSRA) of Rs.8 crores. GSTAAD Hotels serviced the loan until March 2000. After Covid-19, GSTAAD Hotels availed ECLGS Facility of Rs.98 crores on 30.12.2020 at 13% interest. Another ECLGS Facility II of Rs.65 crores was granted on
…Piramal Capital Housing Finance Ltd. entered…
A Cash Management…