OYO – Insolvency – Admitted by NCLT
The National Company Law Tribunal (NCLT) has admitted a plea for corporate insolvency proceeding against Softbank-backed Oyo group's subsidiary Oyo Hotels and Homes Pvt Ltd, which operates under the brand name Weddingz.in. NCLT has appointed advocate Keyur Jagdishbhai Shah as the interim resolution professional. It has given Oyo time till April 15 to submit its claims. Moneycontrol has seen a copy of the public announcement made by NCLT.

Application for Corporate Insolvency Resolution Process against OYO Hotels and Homes Pvt Ltd. was filed u/s 7 of IBC,2016 (Amended 2019)

Admitted by – NCLT

Default Amount – Rs. 16 lakhs

Applicant (Financial Creditor) – Rakesh Yadav

Proposed Interim Resolution Professional – Keyur Jagdishbhai Shah

Insolvency commencement date – 01 April 2021

Claims Submission due date – 15 April 2021

Expected date of completion of Insolvency proceedings – 27 September 2021

During COVID 19 period the monetary limit of default for admitting the application was enhanced to Rs. 1 crore but recently it was again curtailed to Rs. 1 lakh again

Statement by OYO Spokesperson: We are surprised to hear that the Hon’ble NCLT has admitted a petition against OHHPL, a subsidiary of OYO for Rs 16 lakh in a contractual dispute, which dispute is not even with this subsidiary. We have filed an appeal. The matter is sub-judice and we would refrain from commenting further on the merits of the matter at this stage

Additional Points

Tough impact of the COVID-19 pandemic on the hospitality industry,

OYO has announced mass layoffs and was facing vendor pressures and IT raids

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