PGP finds a white knight to win back crown jewel
Entrepreneur A Velumani rescues AHL chairman with Rs 420-cr loan
Le Royal Meridien
CHENNAI: Beset by pandemic woes, hospitality veteran Palani G Periasamy has found a white knight to help him win back his crown jewel, the iconic Le Royal Meridien, Chennai: Thyrocare founder A Velumani, the benefactor who extended him a Rs 420-crore loan to settle the debt.
Velumani, who launched Iheart Properties (P) Ltd after exiting Thyrocare, lent the money against security (hotel plus freehold land), which enabled Periasamy to settle his debts, preparing him to counter MGM Healthcare chairman MK Rajagopalan who made a Rs 423-crore bid to take over the holding firm, Appu Hotels Ltd (AHL).
DT Next has learnt that the brokered deal was struck in September 2022, when the legal tussle between Periasamy and Rajagopalan reached the Supreme Court, which eventually passed an order in Periasamy’s favour.
On December 20, 2023, the National Company Law Tribunal (NCLT) accepted the settlement proposal put forth by Periasamy and directed the termination of the corporate insolvency resolution process against AHL, restoring its rights and management to its original board of directors with immediate effect.
Periasamy refused to divulge the details of the deal he struck with Velumani but expressed happiness about clearing the debts following the “clear verdict” of the apex court. “We have taken possession of the hotels as the owner. All nine banks have been repaid,” he said, adding the borrowed sum was a loan from a well-wisher.
Sources informed this paper that the secured loan from Velumani is for a three-year period routed through Iheart, an investment company floated by Velumani, a former BARC scientist. The Appu Hotels deal was struck swiftly, which came at a time when the resolution professional was relieved and the pre-NCLT status has been restored.
“The case was well-executed given the vulnerability of the situation and the legal entanglement,” said a source aware of the nitty-gritties of the deal, adding that there was enough collateral strength to lend along with interest.
Meanwhile, Rajagopalan has moved the appellate tribunal (NCLAT) against the NCLT order and the matter will come up for hearing on January 12. The proceeding arising out of the tribunal’s order would be subject to the final outcome of the appeal, said the appellate bench.
