The Renaissance Hippodrome of Bangalore Marriott’s landmark hotel was dragged to the NCLT by Edelweiss ARC for unpaid dues of around ₹1,000 crore. The insolvency claim against the hotel was admitted by the court.
The five-star hotel is still operational. In May, Activity area reported that Edelweiss was in constant conversation with hotel management to resolve the matter amicably, but they were having trouble getting the money back. With no resolution in sight, Edelwiess decided to take the company to insolvency court. Marriott declined to comment.
The CRA has filed a petition with the National Company Law Tribunal (NCLT) under Section 7 of the Indian Bankruptcy Court. Petition Section 7. The section deals with issues relating to the initiation of a corporate insolvency resolution process by one or more financial creditors. After a few hearings, the court reserved the admission order last month.
The parent company is Viceroy Bangalore Hotels Private Limited, according to its website, Marriott International has signed a signed management contract with Viceroy.
The hotel has a total of 277 rooms including 246 deluxe double rooms, 30 suites and 1 presidential suit, all-day dining restaurant, specialty restaurants, executive lounge, banquet hall/ballroom, a conference room, a lounge/business center, a health club and spa, swimming pool and parking lot built according to international standards of the “Renaissance” brand of Marriott International Inc. USA
Trademarks in India
Marriott is listed on the Nasdaq. In India, Marriott International has about 30 brands. According to its annual report for 2021, Marriott has 173 hotels worldwide under the Renaissance brand.
BusienssLine had pointed out that for any financial creditor in the hospitality industry, NCLT is the last resort.
According to data from the Insolvency and Bankruptcy Board of India (IBBI), nearly 30% of distressed assets in the hospitality sector end up being liquidated. Hotel businesses struggling through insolvency proceedings are struggling to find new owners as properties degenerate and lose value during a lengthy debt settlement process.
The Corporate Insolvency Resolution Process (CIRP) provisions came into force on December 1, 2016. Since then, a total of 5,258 CIRPs have started as of the end of March 2022. Of these, 3% of businesses drawn to the NCLT are hotels. Approximately 3,400 files have been closed, of which 47% end up going through the liquidation process. Of this number, about 2% of cases come from the hospitality industry.
July 15, 2022