Sahara averts hotel sale, seals loan deal

London/New Delhi, June 7

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In a major deal for Sahara, billionaire brothers David and Simon Reuben are set to take over the crisis-hit Indian group’s Bank of China loan for its three hotel properties — thus averting a ‘default-triggered’ sale of the iconic Grosvenor House hotel in London.

A Sahara group spokesperson said a “last-minute deal” had been negotiated with the Reuben brothers and the talks were in final stages now, but did not comment on the deal size.

A report in the Sunday Times, however, pegged the debt refinance deal at $850 million (Rs 5,500 crore). The Grosvenor House hotel was put on sale by its lender Bank of China earlier this year after a ‘technical default’.

Sahara Group has been trying to raise funds to secure release of its chairman Subrata Roy, who has been lodged in Tihar Jail for over a year, through monetisation of its various assets, including the three overseas hotels. Group spokesperson said in a statement that they had “successfully managed to avert the enforced sale of the Grosvenor House Hotel in London, one of the best-known iconic hotels in the world.

“A team led by group chairman has successfully negotiated a last-minute deal with the Reuben Brothers, who are now in the final stage of taking over the loan portfolio from the Bank of China. The other properties owned by the group are the New York Plaza hotel and the New York Dream hotel.” The group further said the “deal restores Sahara’s ability to renegotiate the loan terms with the new lender, or with third parties.

“The negotiations that are already under way are expected to generate new money for meeting the Group’s immediate requirements in the Supreme Court of India.

“It is a matter of great satisfaction to our Chairman, Subrata Roy Sahara, that the Indian flag will continue to fly on these three globally-renowned hotels,” it added. — PTI