NCLT to hear insolvency Petition filed by Yes Bank on 7 October

NCLT to hear insolvency Petition filed by Yes Bank on 7 October

An insolvency resolution case filed by Yes Bank Ltd against against Tulip Star Hotels Pvt. Ltd is scheduled to be heard on 7 October by the National Company Law Tribunal.

Nausher Kohli, counsel for the private lender, told the tribunal on Friday that Yes Bank has filed an insolvency petition claiming an outstanding debt of ₹1,002 crore from Tulip Star on the basis of corporate guarantees executed by Tulip Star on behalf of the principal borrowers – Ezeego One Travels and Cox and Kings Ltd.

Kohli requested the matter be heard on Friday, but counsel for Tulip Star sought some time from the tribunal for arguing the matter. Tulip Star is a holding company which owns a 50% stake in V Hotels Ltd, which runs a prime hotel in Juhu, Mumbai.

The facts of the case are that in 2019, Yes Bank had bought a 20.6% stake in Tulip Star by invoking 949,930 equity shares of the company. The bank exercised its right after Ezeego, an online travel agency that had pledged Tulip Star shares to it, defaulted on loans. Ezeego is a part of debt-ridden Cox and Kings.

On 9 March, 2021, in a plea brought by its lenders, Ezeego was allowed to be part of the insolvency resolution process. The travel firm owes its lenders over ₹1,078 crore.

After Ezeego defaulted on its term loans in April 2019, Yes Bank filed an insolvency petition with NCLT. The tribunal allowed the petition in 2021 and appointed Gaurav Adukia as the resolution professional.