CHENNAI: The National Company Law Appellate Tribunal (NCLAT) has allowed the settlement proposal submitted by the promoter of Appu Hotels Limited, which owns the Tamil Nadu-based luxury hotel brand Le Royal Meridien.
The appellate tribunal order also withdrew the resolution process of the company and restored Appu Hotel’s original board of directors. The resolution professional will handover all the past reports and accounts to the board and resolution professional is discharged from duty.
The promoter of the hotel chain has raised Rs 420 crore loan from a private fund and received the approval from committee of creditors, according to sources. The promoter is gearing up to resume operations of Hotel Le Royal Meridien is located at Guindy in Chennai and at Coimbatore ahead of Christmas as it got a favorable verdict from NCLAT.
The hotel brands faced financial difficulties during the COVID pandemic and went for corporate insolvency proceedings. NCLT allowed the insolvency proceedings application originally filed by Tourism Financial Corporation of India Ltd in 2019.
Palani G Periasamy, the promoter of Appu Hotels Limited, initiated 12A proceedings, seeking termination of the corporate insolvency resolution process and restoration of the rights and management of the company to its board of directors with immediate effect.
Reacting to the development, Palani G Periasamy, Chairman of Appu Hotels, said, “We are delighted to announce that we are back in the hospitality business. Hotel Le Royal Meridien Chennai and Le Meridien Coimbatore are back with us.”