M/s.RARE Asset Reconstruction Limited("RARE" or "ARC") based at Ahmedabad, which has been assigned the debt together with all security interest and all rights of Velan Hotels Ltd by Andhra Bank and Allhabad Bank during March,2017 under SARFAESI Act, vide their letter dated 18th March, 2019 to the Company that they have given the 'in-principle' approval of the Company's One-Time Settlement ("OTS") offer in response to our request dated February 22, 2019 made to the said ARC subject to the following conditions:
The OTS Amount is Rs.97.50 Crores and initial payment of Rs. 16.78 Crores should be paid on or before March 26, 2019. The Coupon Rate will be 6.50% p.a.on outstanding amount.
Payment to RARE will be from proceeds of sale of Hotel Property Situated at Coonoor, Nilgris District, Tamilnadu and sale of part Machinery at Power Plant.
Upon fulfillment of the above conditions, RARE shall provide formal/final approval for the above OTS offer, as indicated in their communication.
The Company shall, with respect to disclosures as referred above, make disclosures updating material developments on a regular basis, till such time the event is resolved/closed, with relevant explanations.
Shares of VELAN HOTELS LTD. was last trading in BSE at Rs.4.38 as compared to the previous close of Rs. 4.1. The total number of shares traded during the day was 5112 in over 29 trades.
The stock hit an intraday high of Rs. 4.5 and intraday low of 3.91. The net turnover during the day was Rs. 22387.