Shares of Oberoi Realty Ltd rose 1% to touch a day’s high of Rs 1,853.50 on 15th July. This occurred after the company announced that the Committee of Creditors (CoC) of Hotel Horizon Private Limited (HHPL) had approved the resolution plan. The plan was submitted by a consortium comprising Oberoi Realty, Shree Naman Developers, and JM Financial Properties and Holdings.

The Committee of Creditors approved the resolution plan yesterday. Moreover, the Resolution Professional has issued a Letter of Intent (LOI), naming the Oberoi Realty-led consortium as the Successful Resolution Applicant.

The approved plan includes a payment of Rs 919 crore, along with any applicable statutory dues. This amount will fully settle all outstanding claims and CIRP costs. The payment must be completed within 45 days of getting approval from the National Company Law Tribunal (NCLT), Mumbai Bench.

Hotel Horizon Private Limited owns a 7,500 sq. metre sea-facing land parcel in Juhu, Mumbai. The acquisition fits well with Oberoi Realty’s core strategy. It will be carried out either by the consortium directly or through a new special purpose vehicle (SPV).

As part of the plan, the consortium or SPV will invest Rs 1 crore in fresh equity. This investment will acquire full ownership and control of HHPL, subject to required regulatory and NCLT approvals.

At 10:46 AM, the shares of Oberoi Realty were trading 1.34% higher at Rs 1,828.40 on NSE.

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