Velan Hotels update on OTS offer to ARC

Velan Hotels announced that Rare Asset Reconstruction which has been assigned the debt together with all security interest and all rights of the company by Andhra Bank and Allahabad Bank has given its in-principle approval of the company's one-time-settlement (OTS) offer as under -

OTS amount - Rs 97.50 crore
Initital payment - Rs 16.78 crore on or before 26 March 2019
Interest rate - Coupon Rate 6.50% p.a. on outstanding amount
Sales proceeds - Payment to RARE from proceeds of sale of Hotel Property situated at Coonoor, Nilgiris District, Tamil Nadu and sale of part machinery at power plant.

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