History of Asiana Hotel

 Hotel opened in October 2007 with 114 rooms.

 In 2012 added 54 new rooms to 178.
 In 30.11.2015 Bharat Kumar Dugar (Operational Creditor) issued Statutory notice for the
credit value of Rs.1,78,50,000 (1.78 Cr) with interest 18% P.A. So Bharat Kumar Dugar
Filed case in High Court.
 Court moved the case to NCLT on 07.12.2017.
 Mr. Nagarajan appointed as Interim Resolution Professional on 11.08.2017
 On 17.09.2018- Order Resolution Plan was accepted by tribunal.

Resolution Plan as per 17.09.2018

1) Mr. Sarang Sudhakar Kale will take control over Malabar Hotel pvt ltd initially will bring initial
investment of 45 crore towards the resolution process with financial support from IL&FS
financial services Limited.
2) Sarang will infuse 10 crores as equity share capital and 35 crores debt from IL&FS.
3) Utilization of 45 Crores to meet the following expenses:
i) IP Process - 0.23 Crores
ii) Employee - 0.11 Crores
iii) SBI - 24.96 Crores
iv) TJSP - 8.80 Crores
v) Creditors - 1.28 Crores
vi) Renovation - 4.56 Crores
vii) License Fee - 0.43 Crores
viii) Contingencies- 4.63 Crores

4) Existing Outstanding loan amounts (including unpaid interest thereon) by the companies
associated with erstwhile promoters will be converted into Redeemable Non-cumulative
Preference Shares (RPS- bearing B) bearing 0.001% p.a coupon.
1. Kohinoor Planet Construction - 16,67,30,732
2. Hotel Airport Kohinoor - 77,80,754
3. P K Enterprise - 15,69,878
4. Asiana Hotel Management - 83,853

Total - 17,55,65,217 (17.55 Crores INR)

This preference share shall be redeemable at the end of 6 years or immediately upon liquidity
event arising, whichever occurs earlier. The redemption amount after 6 years will be 2.50
times of the existing capital. In the event that the company fails, to redeem RPS- Series B as
stipulated herein, the redemption value of RPS- series B shall be converted into equity share
capital at that point of time. For every 1RPS-Series B, 2.50 Equity shares of the company
shall be issued.

2.5 times – 43,89,13,042 (43.89 Crore INR)

5) Existing paid up equity shareholding will be converted into redeemable, Redeemable Non-
cumulative Preference Shares (RPS- bearing A) bearing 0.001% p.a coupon.
 1. Kohinoor Planet Construction - 9,18,10,000
2. Asiana Hotel - 2,50,90,000
3. Mamallapuram Development - 2,65,00,000
4. K.R. Patel - 1,20,00,000
5. Sriharan - 21,00,000
6. Alagurajan - 5,00,000
7. Pathma Kumar - 20,00,000

Total - 16,00,00,000 (No of Shares)

This preference share shall be redeemable at the end of 6 years or immediately upon liquidity
event arising, whichever occurs earlier. The redemption amount after 6 years will be 2.75
times of the existing capital. In the event that the company fails, to redeem RPS- Series A as
stipulated herein, the redemption value of RPS- series A shall be converted into equity share
capital at that point of time. For every 1RPS-Series A, 2.75 Equity shares of the company
shall be issued.

2.75 times – 44,00,00,000

6) Upon restructure as per Resolution plan Mr.Sarang Kale and his nominee will get shares
10,00,00,000/- equity shares (10 Crore) and 100% shareholder.

7) Total value of resolution plan in terms of value - 1,32,89,13,042 (1.32 Crore INR)

8) Sarang rebranded hotel as “Elite Grand”

9) On November 2018, Edelweiss Finvest Private limited disbursed loan amount of Rs.45 Crore to
Malabar Hotels private limited by mortgaging hotel land and building. In addition with 10 Crores
in the name of Kaleidoscope Projects Pvt Ltd

10) Loan becomes NPA. Edelweiss issued demand notice on 02.09.2021 for the value of Rs.
71,93,82,366 (INR) as on August 31, 2021 to Malabar hotels private limited & May 31 st for the
value of 14.42 Crores (Kaleidoscope Projects Pvt Ltd)

11) On 27.12.2021 Sriharan Sripadmanabhan and Asiana hotel management company put together
holding 17.01 % of share (if preference share converted into equity share) filed a case against
Malabar hotel pvt ltd, Sarang sudhakar kale, and other directors of Malabar hotels pvt ltd,
Kaleidscope Projects Pvt Ltd, Edelweiss finvest, Edelweiss ARC and erstwhile RP for getting
injunction to proceed further in SARFAESI act.

12) Next hearing comes on 27.06.2022 for the above mentioned case.