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The National Company Law Tribunal (NCLT) has admitted JC Flowers Asset Reconstructions’ application to initiate insolvency proceedings against Tulip Hotels over defaults of ₹900 crore.
The application was originally filed by Yes Bank, the lender. The debt was subsequently assigned to JC Flowers, which filed a substitution application that was allowed on March 6.
Tulip Hotels had challenged this debt assignment. However, the same was dismissed on March 23.
According to JC Flowers ARC’s counsel Nausher Kohli, the hospitality company had defaulted payment under two guarantees in its capacity as a guarantor for repayment of two loans worth ₹450 crore disbursed by Yes Bank to Cox and Kings, and Ezeego One Travel & Tours each. Both the companies committed breach and default in repayment of debt.
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