Days after global hospitality firm Hyatt Hotels Corporation suspended operations at Hyatt Regency hotel in Mumbai, a report on June 9 said that Raj Kumar Bhargava and Lalit Bhasin have resigned as Independent Directors of its owner Asian Hotels West, effective June 8.
As per a report by CNBC-TV18, both the directors cited refusal of the chairperson to convene board meeting to discuss financial problems of the firm, as the reason behind their resignation.
The news channel further reported that Raj Kumar Bhargava said he sees "no future in the company as no funds are coming from promoters".
Lalit Bhasin, on the other hand, flagged atmosphere of hostility among the promoters. Bhasin, the report added, also said that the company was in default of not only bank loans but also of statutory dues.
The company has also not taken remedial steps to meet the financial disaster, he was quoted as saying.
On June 7, Hyatt Regency, one of Mumbai’s popular five-star hotels near the airport, shut operations due to the non-payment of staff salaries. Besides, its owners has defaulted on bank loan repayments, including a car loan EMI.
Also Read: Hyatt Regency Mumbai suspends operations after owner fails to pay salaries
As per filings made to the stock exchanges, Asian Hotels (West) failed to repay the principal and interest of Rs 4.32 crore taken from YES Bank as term loans. The defaults included a car loan EMI of Rs 400,000. Asian Hotels has a total debt of Rs 262.54 crore.
Located on the Sahar Airport road, Hyatt Regency is a stone’s throw away from ITC Maratha and the Hilton Mumbai International Airport. Within a radius of less than a kilometre from Hyatt Regency lies three other five-star hotels, the JW Marriott, The Lalit and The Leela. These properties will most likely benefit from the shutting of operations of Hyatt Regency.