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TMT Law Practice advises WinZo on USD 12 Million Buyback from Hike
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TMT Law Practice advises WinZo on USD 12 Million Buyback from Hike
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India: NCLT initiates insolvency proceedings against Oyo subsidiary
Ritesh Agarwal. Photographer: Samyukta Lakshmi/Bloomberg
April 7, 2021
The National Company Law Tribunal (NCLT) has ordered a corporate insolvency resolution proceeding against hospitality unicorn OYO’s subsidiary, OYO Hotels and Homes Pvt. Ltd, over a dispute of ₹16 lakh. OYO said it had filed an appeal challenging the insolvency order.
The court ordered the insolvency proceedings on 30 March, with OYO given time until 15 April to submit its claims.
“Notice is given that the National Company Law Tribunal has ordered the commencement of a corporate insolvency resolution process of the OYO Hotels and Homes Pvt. Ltd on 30th March 2021 (w.e.f. 01st April 2021). The creditors of M/S. OYO Hotels and Homes Pvt. Ltd, are hereby called upon to submit their claims with proof on or before 15th April, 2021 to the interim resolution professional,” read the NLCT order.
Will Oyo be forced to give 7% equity to Zostel?
The matter goes back to 2015 when Zo Rooms and Ritesh Agarwal-led Oyo started merger talks. Next year, the deal was called off by Oyo. In 2018, Zo approached the Supreme Court which directed to start the arbitration process
Manu Kaushik | March 16, 2021 | Updated 22:56 IST
Representative Image
Recently, an arbitral tribunal ruled in favour of Zostel Hospitality, a chain of backpackers hostels, in its three-year-old legal battle with SoftBank backed-Oyo Hotels and Homes. Under the deal, Oyo was supposed to acquire Zostel s business. In return, it was expected to give 7 per cent shareholding to Zostel. Zostel claimed that it has transferred its entire business but Oyo refused to transfer shareholding.
Will Oyo have to really give 7% shareholding to Zostel?
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