The National Company Law Appellate Tribunal (NCLAT) has granted approval to the settlement proposal submitted by the promoter of Appu Hotels Limited, the owner of the renowned Tamil Nadu-based luxury hotel brand, Le Royal Meridien. This decision marks a pivotal moment as it not only allows the settlement but also terminates the resolution process of the company.
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The NCLAT order goes further, reinstating Appu Hotel’s original board of directors and relieving the resolution professional of duties. The resolution professional will transfer all past reports and accounts to the board. The settlement, supported by a Rs 420 crore loan from a private fund and approved by the committee of creditors, signals a significant step towards the revival of operations for Hotel Le Royal Meridien in Guindy, Chennai, and Coimbatore, with plans to resume before Christmas.
Appu Hotels faced financial challenges during the COVID pandemic, leading to corporate insolvency proceedings initiated by Tourism Financial Corporation of India Ltd in 2019. Promoter Palani G Periasamy initiated Section 12A proceedings, seeking termination of the insolvency process and the immediate restoration of the company’s rights and management to its board of directors. Chairman Palani G Periasamy expressed delight, stating, “We are back in the hospitality business, with Hotel Le Royal Meridien Chennai and Le Meridien Coimbatore back with us.”
