Covid-19: Taj-GVK Hotels seeks moratorium on loan repayments from lenders

ICRA said it has not treated the missed payment as a default for now, despite absence of a formal approval from the lenders allowing for a payment relief

Faced with severe pressure on revenues, TajGVK Hotels & Resorts Ltd, a joint venture of Tata group’s Indian Hotels and GVK group, is approaching lenders for a moratorium on loan repayments under RBI’s Covid-19-Regulatory Package.

TajGVK did not honour payment obligations falling due in March 2020, pertaining to a Rs 94.75 crore term loan, according to rating agency ICRA.

The rating agency affirmed “A+” rating for long term loans and “A1+” for short term loans. However, it revised the outlook on rating from “stable” to “Negative”.