Home / News / India /  Yes Bank moves  NCLT against Tulip Star

The Mumbai bench of the National Company Law Tribunal said it will hear on 7 October an insolvency resolution case moved by Yes Bank Ltd against Tulip Star Hotels Pvt. Ltd in the bankruptcy court.

Nausher Kohli, counsel for the private lender, told the tribunal on Friday that Yes Bank has filed an insolvency petition claiming an outstanding debt of 1,002 crore from Tulip Star on the basis of corporate guarantees executed by Tulip Star on behalf of the principal borrowers -- Ezeego One Travels and Cox and Kings Ltd.

Kohli requested the matter be heard on Friday, but counsel for Tulip Star sought some time from the tribunal for arguing the matter.

Tulip Star is a holding company which owns a 50% stake in V Hotels Ltd, which runs a prime hotel in Juhu, Mumbai.

In 2019, Yes Bank had bought a 20.6% stake in Tulip Star by invoking 949,930 equity shares of the company. The bank exercised its right after Ezeego, an online travel agency that had pledged Tulip Star shares to it, defaulted on loans. Ezeego is a part of debt-ridden Cox and Kings.

On 9 March, 2021, in a plea brought by its lenders, Ezeego was allowed to be part of the insolvency resolution process. The travel firm owes its lenders over 1,078 crore.

After Ezeego defaulted on its term loans in April 2019, Yes Bank filed an insolvency petition with NCLT. The tribunal allowed the petition in 2021 and appointed Gaurav Adukia as the resolution professional.

ABOUT THE AUTHOR

Priyanka Gawande

Priyanka Gawande is a senior legal correspondent at Mint. She has worked as legal reporter for four years with both television and digital mediums. Based in Mumbai, she reports on disputes across sectors including banking, corporates and finance. This also includes insolvency and bankruptcy cases and intellectual property rights (IPR) litigation. Her focus also comprises tracking capital markets and disputes relating to securities law. Previously, Priyanka worked with Informist Media for 2.5 years covering major insolvency and bankruptcy cases and corporate developments. She started her career in journalism with Business Television India (BTVi) where she reported on primary markets, banking, finance and insurance companies.
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