Companies & Sectors
Sahara clinches $850 mn debt deal for foreign hotels: Report

The Sahara Group has been trying to raise funds through monetisation of its various assets, including these three overseas hotels to secure the release of chairman Subrata Roy, currently lodged in Tihar Jail in New Delhi for over a year

 

In a relief for the crisis-hit Sahara Group, the Indian company has sealed the sale of its Grosvenor House hotel here and two US properties -- Plaza and Dream Downtown -- in an $850 million debt refinance deal, a local media report said on Sunday.
 
The Sunday Times reported that, by the deal, which is worth the approximate equivalent of Rs.5,500 crore, the Reuben brothers "have taken control of the Grosvenor House in London and two other luxury hotels in New York through a $850 million debt deal".
 
"David and Simon Reuben, whose empire stretches from data centres to horse racing, clinched the purchase of two loans against the properties from Bank of China late last week," it added.
 
The Bank of China put Grosvenor House under "administration" early in March for recovery of its loans.
 
The Sahara Group has been trying to raise funds through monetisation of its various assets, including these three overseas hotels to secure the release of chairman Subrata Roy, currently lodged in Tihar Jail in New Delhi for over a year.
 
Sahara had said at that time that the Grosvenor House hotel was being "treated under default" because the Bank of China has declared "an event of default" on the US loans owing to some "technical breaches" in the financial covenants.
 
Sahara's refinancing arrangements involved getting a fresh loan for the three properties. A part of the proceeds would go to the Bank of China for the release of Grosvenor House from "administration", while the remainder could be deposited with markets regulator Sebi in Mumbai to secure release from jail of Roy and two other company officials.
 
Sahara acquired the three hotels between 2010-2012 at an estimated valuation of $1.55 billion.
 
IANS attempted to contact the Sahara spokesperson for a corroboration of the report in the matter, without success.

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COMMENTS

integrity

2 years ago

An article on this Sahara case in long pending from Ms Sucheta Dalal

History made as India, Bangladesh ratify land swap
India and Bangladesh on Saturday ratified the Land Boundary Agreement here as India's Prime Minister Narendra Modi and his Bangladeshi counterpart Sheikh Hasina presided over the ceremony of exchange of instruments of ratification of the land swap.
 
"History is made as the Instruments of Ratification of the Land Boundary Agreement are exchanged," Modi tweeted.

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Deccan Chronicle vice chairman, PK Iyer held for fraud

Odisha Police later handed over Iyer, who was on the run, to the Central Bureau of Investigation (CBI), a police officer said

 

PK Iyer, vice chairman of the Deccan Chronicle Holdings Ltd. (DCHL), was arrested from a hotel here on Saturday in connection with an alleged loan fraud.
 
Odisha Police later handed over Iyer, who was on the run, to the Central Bureau of Investigation (CBI), a police officer said.
 
"The CBI was looking for Iyer in connection with an alleged fraud to the tune of Rs.357 crore from Canara Bank," said Deputy Commissioner of Police Satyabrat Bhoi.
 
He said Iyer was staying in the hotel in the name of Chitra Athwani for about two months and was planning to flee in the next two-three days.
 
"The accused had availed multiple short-term corporate loans by submitting false financial statements in 2009-11," the officer added.
 
Police sources said Iyer had stayed in Kolkata and Port Blair before coming to Bhubaneswar.
 
The CBI will take him on transit remand for interrogation.
 
The Canara Bank had lodged a complaint with the CBI against the company's promoters in 2013 after the company defaulted on a loan amounting to over Rs.350 crore.
 
A fraud case was registered against Iyer in Hyderabad. 
 
Earlier this year, the chairman of Deccan Chronicle, T. Venkattram Reddy, was arrested by the CBI in Hyderabad along with his brother and managing director T. Vinayak Ravi Reddy.
 
The DCHL, which publishes the English daily Deccan Chronicle, argued that the arrests were made in violation of Supreme Court orders.
 
The Canara Bank alleged that they availed loans and cash credit aggregating to Rs.1,230 crore by submitting false and fabricated financial statements and by suppressing the borrowings taken from other banks.
 
The bank claimed that the total loss caused to it was about Rs.357.77 crore.
 

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