Hyderabad-based hospitality firm Conclave Infratech has filed an insolvency application against Oravel Stays that owns budget hotel chain Oyo Rooms for allegedly breaching contract for monthly payments of nearly Rs 13 lakh every month since May 2018.
Conclave Infratech, which owns The Conclave hotel in Hyderabad, which was being managed by Oyo Rooms, has moved the National Company Law Tribunal's (NCLT's) Ahmedabad chapter. The matter is yet to be listed for hearing.
As per the term of the agreement signed between Conclave and Oyo, the corporate debtor, Oravel, would pay the corporate creditor, Conclave, an assured benchmark revenue, which is minimum business guarantee of Rs 12,96,000 every month irrespective of bookings, Conclave Infratech claimed in its application. "There has been no repayment of the unpaid operational debt by the Corporate Debtor to the applicant," it said.
Source: Economic Times