Pegasus takes partial control of Breeze Hotels

Following an order from the chief metropolitan magistrate, Egmore, Pegasus Asset Reconstruction Company has taken partial possession of Chennai-based Breeze Hotels.

The action comes after the hotel management defaulted the loan taken against mortgage of the property on the Poonamallee High Road, Chennai, to IndusInd Bank.

According to a press note, Pegasus Asset had approached the chief metropolitan magistrate for taking physical possession of the mortgaged property of the mortgager/guarantor, Breeze Hotel. The dues currently amount to around Rs 60 crore.

“The Chief Metropolitan Magistrate had passed an order appointing an advocate commissioner for taking possession of the property and hand over the same to the authorised officer of Pegasus Assets . The advocate commissioner, with police protection, has taken part possession of the property and handed over the same to the authorised officer,” the company said in the press release.

The magistrate has also fixed the auction date to sell off the property as June 20, 2012, though it is considering giving back the property to the promoters if they could remit the money in a fixed period.

The management of the hotel has sought 15 days time to remit the amount and, based on this, the advocate commissioner has not taken possession of the entire property. The hotel has 91 rooms, besides banquet halls, coffee shop, restaurants and a bar, the release added.