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The National Company Law Tribunal has approved the resolution plan for Hotel Horizon, allowing a consortium led by Oberoi Realty, Shree Naman Developers and JM Financial Properties and Holdings to acquire the insolvent company. The plan proposes a payout of INR 919 crore against total admitted claims of INR 1,293 crore, offering around 74% recovery to lenders. Hotel Horizon's main asset is a prime 1.85-acre land parcel in Juhu, Mumbai. However, the National Company Law Appellate Tribunal has put a temporary hold on equity creation under the plan, pending further hearings.
The National Company Law Tribunal (NCLT) has approved the resolution plan for Hotel Horizon, marking a key step in the insolvency resolution of the Mumbai-based hospitality company. The approved plan enables a consortium comprising Oberoi Realty, Shree Naman Developers and JM Financial Properties and Holdings to acquire the company following creditor approval under the Insolvency and Bankruptcy Code (IBC). Advertisement
The resolution plan had earlier received unanimous support from secured financial creditors. It proposes a total payment of INR 919 crore to settle admitted claims amounting to INR 1,293 crore, translating into a recovery of nearly 74% for lenders. This recovery rate is considered significant in the context of stressed hospitality assets, particularly those that have remained non-operational for extended periods.
Hotel Horizon's principal asset is a 1.85-acre freehold land parcel located in Juhu, Mumbai, close to the beachfront. The property has long been viewed as valuable due to its location, despite the hotel operations remaining suspended for years amid mounting debt and legal challenges. The land value has been a central factor in creditor interest and the eventual approval of the resolution plan.
While the NCLT has cleared the acquisition, the National Company Law Appellate Tribunal (NCLAT) has passed an interim order restricting the creation of equity under the resolution plan. This direction follows appeals filed by the suspended directors of Hotel Horizon, who have challenged the approval of the resolution framework. The appellate tribunal has allowed the implementation of the plan to proceed, except for actions related to equity issuance or restructuring.
The consortium has been permitted to acquire Hotel Horizon either directly or through a special purpose vehicle, subject to compliance with regulatory approvals and the final outcome of the appellate proceedings. Further hearings before the NCLAT are scheduled later this month, during which the tribunal is expected to examine the objections raised against the resolution plan in detail.
Hotel Horizon had entered insolvency proceedings after failing to service its debt obligations over several years. The case adds to a series of high-value insolvency resolutions in Mumbai where land assets, rather than operating cash flows, have driven lender recoveries.
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