Gurugram-based hotelier Rakesh K Yadav, who filed a plea with the The National Company Law Tribunal against a unit of hospitality firm Oyo, has withdrawn the case after resolving issues with the company. “After open discussion with teams from Oyo and its subsidiaries, I fully withdraw the case and confirm that all issues are resolved. I also acknowledge the receipt of Rs 16 lakh under the MSA (master service agreement) with MTH. I have observed in my interactions that Oyo and its employees are always committed to professional conduct and business practices. I am thankful for Oyo s innovative business model and technology that has enabled the growth of small and medium hotels of India,” Yadav said.
Oyo seeks to raise $600 million loan
The Ritesh Agarwal-helmed company is scheduled for a lender call on May 21, and commitments for the loan are due by June 2. JPMorgan Chase & Co is arranging the deal
BusinessToday.In | May 21, 2021 | Updated 12:31 IST
Oyo looks to raise $600 million
Oyo Hotels is looking to raise a $600 million loan, following the ravaging second wave of coronavirus in the country that impacted its recovery plans. The company is offering unusually generous terms to investors as it looks to raise the loan.
Parent company Oravel Stays Pvt is discussing a five-year term loan B at 850 basis points over LIBOR (London Inter-bank Offered Rate), as mentioned in a report in Bloomberg. This is higher than the usual guidance given for recently issued term loan Bs in Asia-Pacific market. Oyo s loan also features maintenance covenants usually included only for companies that are considered risky by investors.
Read more about Softbank-backed Oyo seeks $600-million loan amid virus surge: Report on Business Standard. Funds sought by hotel startup to bolster balance sheet, service older loans
Highlights
CEO publishes series of tweets.
NCLT order pertains to the Ahmedabad entity.
New Delhi: Several news reports on Tuesday said that Hospitality firm OYO has applied for bankruptcy under IBC 2016.
However, the company s CEO Ritesh Agarwal denied claims via a series of tweets and said that OYO has not filed for bankruptcy. THe NCLT order pertains to the Ahmedabad entity and not exactly for Oravel Stays Pvt Ltd. There is a PDF and text message circulating that claims OYO has filed for bankruptcy. This is absolutely untrue and inaccurate. A claimant is seeking INR 16Lakhs (USD 22k) from OYO s subsidiary leading to a petition at NCLT, said company s CEO Ritesh Agarwal.
NCLT admits insolvency plea against Oyo entity, company challenges order
NCLT admits insolvency plea against Oyo entity, company challenges order
Oyo has challenged the NCLT order initiating corporate insolvency proceedings against its entity, Oyo Hotels and Homes Pvt Limited. Oyo also rubbished bankruptcy rumours doing rounds online.
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UPDATED: April 7, 2021 14:17 IST
Oyo has challenged the NCLT order initiating corporate insolvency proceedings against one of its subsidiaries. (Photo: Reuters)
A plea for corporate insolvency proceeding has been admitted by the National Company Law Tribunal (NCLT) against a subsidiary of Soft Bank-backed Oyo Rooms.
Oravel Stays Pvt Limited, the parent company Oyo Rooms, has challenged the NCLT order initiating insolvency proceedings against OYO Hotels and Homes Pvt Limited (OHHPL).