Chalet Hotels sanctions loan of Rs200 crore for refinancing; Stock up ~3%

17 May 2022 , 10:31 AM

Chalet Hotels Ltd has informed that the Company has been sanctioned a loan of Rs200 crore from lending institution for refinancing of existing debt availed for J W Marriott Mumbai Sahar Hotel and towards General Corporate Purposes including Working Capital requirements, for a tenure of 10 years including moratorium period of 2 years for principal repayment.

As per sanctioned terms and conditions of the said facility, the lender has an option to convert the loan into Equity in the event of default by the borrower.

The Promoters of the Company have furnished an Undertaking to the Lender to accord positive assent to necessary resolution/s proposed by the Company in an event of default to enable conversion of the Facility (as may be decided by the Lender) into Equity under Section 62 of the Companies Act, 2013, as and when called upon by the Lender to do so.

On Tuesday at around 10:33 AM, Chalet Hotels was trading at Rs308 apiece up by Rs8.5 or 2.84% from its previous closing of Rs299.50 apiece on the BSE.