Hyatt Regency Delhi taken to bankruptcy court: Report
Continuum Energy told the NCLT that the hotel defaulted on a power purchase agreement that was signed two years ago.
January 16, 2021 / 03:45 PM IST
Hyatt Regency Delhi has been taken to bankruptcy court by Morgan Stanley-owned Continuum Energy.
Continuum Energy told the National Company Law Tribunal (NCLT) that the hotel defaulted on a power purchase agreement that was signed two years ago, The Economic Times reported.
Under the contract, the hotel was obliged to draw electricity from a Continuum hydro power plant located in Himachal Pradesh.
The hotel failed to procure an open access licence from the electricity regulator to enable the power supply, the report said.
Hyatt has an outstanding payment of Rs 2.5 crore towards Continuum Energy, the report said court filings.
Continuum Energy's Chief Executive Officer (CEO) Arvind Bansal confirmed the bankruptcy filing to the paper.
Hyatt Regency Delhi, owned by Asian Hotels (North) Ltd, told The Economic Times that Continuum's application is "frivolous".
"Regrettably, Sandhya Hydro company has not honoured on several counts having executed the agreement, including terms of supply & on aspects of captive compliance(s). Despite our claims of amounts owed, Sandhya Hydro, without assigning any plausible reason, stopped power supply to our company, which has prompted an appropriate civil action from our side," said an email from the office of Shiv Jatia, Managing Director of Asian Hotels North.