Chennai: M K Rajagopalan, Chair and Managing Director of MGM Healthcare Private Limited (MHPL), has acquired Hotel Appu Limited – which has a five-star hotel under the Le Meridien brand in Chennai and Coimbatore – for RS 423 Crore.
Development came after the NCLT Chennai division bench – I rejected the objection submitted by the original promoter led by Palani G Periasami on the assessment of the property and passed the last sequence on July, 1521.
The bench also rejected the petition submitted by the promoter under Section 12A IBC which allowed Authority teaches to enable application withdrawal with 90% voting approval by creditors.
MGM is likely to convert Le Meridien Hotels located in Guindy to health care facilities and can maintain the Coimbatore property as a hotel.
‘Assets worth 1,600 crore approved for sale for RS 423cr’While Rajagopalan declined to comment, the actual did not respond to the call from TOI on Sunday.
“NCLT orders allow Appu hotels to appeal in 30 days.
It will be interesting soon,” said the source.
“It was the fact that Rajagopalan offered RS 423 Crore and NCLT Chennai approved it.
But we have objected to the assessment below section 12A.
How the property can be worth 1,600 crore rs very low,” said Periasamy to Toi a few weeks ago.
Rajagopalan is Chairman of Sri Balaji Education & Public Stadium Amal and Sri Balaji Vidyapeth Trust, who runs the Mahatma Gandhi Medical College & Research Center (MGMCRI), was established in Puducherry in 2001, and Sathya Sai Medical College in Kancheepuram Regency in 2007.
Sri Balaji Vidyape Reporting RS 636 Crore’s revenue with a surplus RS 345 Crore at FY20, according to limited analysis of maintenance ratings.
Finance tourism Corporation of India initiated the process of resurrection of corporate resurrection (CIRP) under Section 7 IBC, 2016, against Appu hotels for debt and delayed orders passed by NCLT on May 2020.
Creditors were secured and unsafe then installed claims around Rs 389 Crore.
Interim Resolution Professional (IRP) appointed registration assessment arrived with a fair value of Rs 730.9 Crore and the Liquidation Value of Rs 569.3 Crore.
Rajagopalan, Madhav Dhir and special situation boxes submitted an offer, but only Rajagopalan was on track with the final resolution plan that offered Rs 423 Crore, approved by the majority of 87.39% at the ninth meeting of the credit office committee on January 22.
Estimating the property at Rs 1,600 Crore, promoters led by Periasamy objections to the resolution plan to quote the procedural lakuna and wrong information in CIRP behavior.
Advice for promoters say the fair value and liquidation value is at least 30% lower than other assessments conducted in September 2019.
Even by considering the Covid-19 pandemic situation and the surprise of the market produced, the assessment of 70% in the assessment of corporate debtors “cannot be maintained and not Believe “, said Counsel.