According to reports, Mirach Capital, funded largely by a wealthy Indian family, has decided to lend about $2 billion to Sahara group
Miami-based Mirach Capital, an investors group funded largely by a wealthy Indian family has decided to lend about $2 billion to Sahara group, say reports.
"Mirach Cap has decided to take over Sahara's $882 million loan from Bank of China and extend $650 million to the Subrata Roy-led group," say a report from Moneycontrol.
Saransh Sharma, chief executive of Mirach Capital also told CNBC-TV18 that "the debt fund’s exposure is not so much to Sahara as to three hotels, which are the 'Monalisas' of the industry." He said Sahara’s assets have been neglected due to stress and litigation, adding he sees great opportunity and expects a turnaround in the company.
Out of the total $2 billion funding, the rest would go to the bail of Sahara group chief, who is in jail since March 2014.
Mirach Cap has already made it clear that their end goal is to own The Plaza, as well as two other hotels that Sahara currently owns. It includes Grosvenor House in London and one premium property in New York that would be taken over by Mirach Cap in the case of default.
Earlier in December, Sahara sold a big land parcel at the outskirts of the national capital for Rs1,211 crore to Gurgaon-based developer M3M India Ltd.
Sahara was allowed by the Supreme Court, to sell four properties in order to raise about Rs2,710 crore out of the total of Rs10,000 crore needed to secure the release of its chief, Subrata Roy.
Roy, who was sent to jail on 4 March 2014 in a case involving alleged non-refund of over Rs20,000 crore with interest to depositors, was asked by the court to pay Rs10,000 crore to get bail, out of which Rs5,000 crore should be paid in cash and rest of the amount in bank guarantee.