Macrotech Wins Bid To Acquire Bankrupt V Hotels

Macrotech Developers Ltd. said it emerged as the successful resolution applicant of bankrupt hotel operator V Hotels Ltd.

V Hotels’ resolution professional via a letter of intent informed that the company’s committee of creditors declared Macrotech as the successful resolution applicant under the Insolvency & Bankruptcy Code (IBC), the Indian real estate developer said in a stock exchange announcement.

The Mumbai-based hotel operator’s creditors identified the resolution plan submitted by Macrotech, formerly Lodha Developers Ltd., as the successful resolution plan, it added.

The implementation of the resolution plan is subject to the terms of the letter of intent and requisite approvals from the National Company Law Tribunal (NCLT) and other regulatory authorities, according to the statement.

Macrotech said V Hotels has real estate assets, which can be developed for residential and allied uses. It didn’t disclose further details.

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.

The Mumbai bench of the National Company Law Tribunal (NCLT) admitted V Hotels for corporate insolvency resolution process (CIRP) via an order dated 31 May 2019 under Section 7 of the IBC, according to its website.

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, V Hotels said.

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, the company said. Consequently, the CIRP order passed by the NCLT was restored and is in effect, it added.

V Hotels received a total claim of more than 9,621 crore rupees ($1.17 billion) from creditors as of 14 March 2023, and the total admitted claim stood at a tad over 2,501 crore rupees, according to its website.

Note: $1 = 81.9632 Indian rupees

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