AJAY MODI & NAMRATA ACHARYANew Delhi/Kolkata, 11 April

The Gateway, a 197-room hotel inKolkata managed by the Taj Group forover four years, has ended up at theNational Company Law Tribunal(NCLT). Edelweiss ARC has taken JalanIntercontinental Hotels, the owner ofThe Gateway, Kolkata, to the NCLT forrecovering its dues.

One round of bidding has takenplace, but the bids received were lowerthan the liquidation value. The Gatewayis a full-service upscale hospitalitybrand under the Taj Group. Launchedin December 2013, the Gateway hotel,Kolkata, is the first Taj hotel to belaunched in West Bengal after the icon-ic Taj Bengal Hotel in the 1980s. TheGateway hotel in Kolkata is built on 1.9acres. Rooms are priced anywherebetween ~7,000 and ~8,000 per night.

Edelweiss took JalanIntercontinental to the NCLT inAugust with a claim of around ~1.27billion. According to the company, thehotel faced a cost escalation, whichled to non-payment of dues. Againstthe originally envisaged ~1 billion, theproject cost rose to ~1.4 billion, sincethe authorities debarred constructionduring the night. This also led to a timeoverrun and the project was complet-ed in four and half years, a year morethan estimated.

The committee of creditors has sofar received two bids for the property.“The bids received were lower thanthe liquidation value of the company.We have asked the bidders to revisetheir bids. There is no need for a freshbidding,” said a source in theCommittee of Creditors.

Aditya Jalan, managing director,Jalan Intercontinental Hotels, is lookingto rope in an investor to bid for the prop-erty. He estimates the fair value of theproperty to be around ~1.7 billion

“The Gateway is a managementcontract and this remains valid. We con-tinue to welcome guests and it is busi-ness as usual,” a spokesperson said.

Jalan is banking on amendments tothe Insolvency and Bankruptcy Code(IBC), which is likely to allow promotersof small and medium enterprises(SMEs) to bid for their company. “Weare bringing on board an investor, andwe are ready to pay the principalamount to every creditor. We are plan-ning to propose a structured payment

over eight years,” he said.Umesh Saraf, joint managing direc-

tor at Saraf Hotel Enterprises, said hiscompany, which owns nine hotels inthe country (mostly run under theHyatt brand), had bid for the hotel. “Anumber of hotels are under stress… Callany asset reconstruction company(ARC) and you will see they have 20hotels on sale. All are now going to theNCLT. We have bid for a few. But we arenot buying a monument. It has to makebusiness sense,” said Saraf, adding thatvaluations were high.

Hotels had seen a challenging phasein the last few years due to low occu-pancy and tariffs. These instances (saleof hotel properties) were an outcomeof the industry performance in recentyears and over leveraging by asset own-ers, said Raj Rana, chief executive offi-cer, South Asia, Radisson Hotel Group.

With inputs from Avishek Rakshit

Taj Gateway endsup at NCLT

Air India buyer has to take overinterest-bearing debt of ~165 bnARINDAM MAJUMDERNew Delhi, 11 April

Apotential buyer of Air India willtake over an interest-bearingdebt of around ~165 billion. A

large portion of the debt is backed byassets like aircraft that Air India owns.Interest-bearing debt is the portion ofthe debt on which banks charge interest.

According to the preliminary infor-mation memorandum shared by the gov-ernment, a debt of ~333.92 billion willremain on the company’s books, whilethe rest will be hived off into a separateasset-holding company. It includes cur-rent liabilities, which have been incurredin the natural course of business.

According to people close to the trans-action process, of the ~333.92-billion debt,~88.16 billion is on account of current lia-bilities. Essentially, these are bills due tocreditors and suppliers within a shortperiod like a year. “In any merger andacquisition, current liabilities are passedon to the buyer,” a source said.

Of the remaining ~245 billion, around

~80 billion is on account of finance leaseof aircraft. Finance leasing is one of thelucrative forms of aircraft financing,under which the lessee receives sub-stantially all rights of ownership. Aircrafttaken under finance lease are consid-ered to be an asset of the company incontrast to an operating lease, whichaffects the company’s cash flow.

“Finance lease can be terminated toget out of the liability and thus the debt onwhich a buyer has to pay interest comesdown to around ~165 billion. This is a fair-ly clean slate for an airline of Air India’ssize and potential,” the source said. Hesaid many global airline majors likeLufthansa, Etihad and British Airwayshad shown interest. Queries have alsocome from private equity funds likeWarburg Pincus (US), and GIC (Singapore)and Temasek (Singapore).

Additionally, a large portion of thedebt are aircraft related, meaning theyare backed by aircraft value.

According to research by ICICISecurities, more than 50 per cent of thedebt will be backed by aircraft value. Air

India owns 32 aircraft, and has 37 aircrafton finance lease, while Air India Expressowns 17 aircraft on finance lease as on2016-17 Giving a breakdown of the calcu-lations, the report said aircraft-relateddebt of Air India and Air India Express is~160 billion and ~11 billion, respectively.

Analysts have supported the claims,saying the terms are aligned to generatinginterest from investors. “The expression ofinterest (EoI) attempted to balance theneeds of different stakeholders. As in suchcomplex transactions, being flexible andhaving an open mind on major issues isnecessary. Revising EoI with liberal termswill be required to further align it toinvestor interest,” said Kapil Kaul, CEOof aviation consultancy firm CAPA.

Air India’s debt has been a bone ofcontention for suitors. IndiGo, Jet Airwaysand Tatas are unwilling to participate oncurrent terms. “It is the question based onthe evaluation that we did and felt thatthis level of debt on the asset may not beappropriate for us. It may be appropriatefor someone else,” Amit Agarwal, deputyCEO of Jet Airways, had said.

Tatas unlikely to bid for AI on current termsREUTERSNew Delhi/Mumbai, 11 April

The Tata Group, widely seen as apotential suitor for Air India, isunlikely to consider a bid for thecarrier as the government’s termsare just too onerous, two sourcessaid. India, keen to sell the loss-mak-ing, debt-ridden airline, finalisedplans in late March to divest a 76 per cent stake and offload about$5.1 billion of its debt.

But the Centre has stipulatedthe winning bidder cannot mergethe airline with existing business-es as long as the government holdsa stake. The winner may also berequired to list Air India andwould need to abide by the condi-tions designed to safeguardemployee interests, restricting itsability to cut staff.

Since the terms were disclosed,no company has come forward tosay it is interested or to reaffirm pre-vious interest. Jet Airways and

IndiGo have already opted out.A lack of interest from Tata is

likely to put pressure on the gov-ernment to rethink its terms or eventhe structure of the sale.

“The deal structure needs seri-ous corrections,” said Amber Dubey,partner and India head of aerospaceand defence at consultancy KPMG.He said the main challenges arethe debt, the government’sresidual stake and the work-force. The Tata group,which owns stakes in twoairline joint ventures inIndia, does not see “how a dealwould be workable” under the cur-rent terms, said a source. “Anyonewho puts money upfront... even forTata to put in that kind of money, itwould want complete control,” saidthe second source. Tata Sons, theholding company for the Tatagroup, declined to comment.

In addition to the 76 per centstake, the government is also sellingall of Air India’s low-cost arm — Air

India Express, and 50 per cent inthe airline’s baggage handling andairport services unit.

The buyer would have manage-ment control and gain access tomore than 2,500 international slotsand over 3,700 domestic slots. Butit would also need to take on AirIndia’s 27,000 employees, 40 per

cent of which are permanentstaff. While the government

has not set any minimumprice, the entire sale couldfetch between ~80 billion

and ~100 billion ($1.2 billionto $1.5 billion), said two bank-

ing sources.By contrast, Kotak Institutional

Equities said to clients this monththat even if a buyer paid nothingfor the equity, Air India still lookedexpensive versus peers due to itsdebt and lease obligations alone.

Air India, which was bailed outin 2012 with $5.8 billion of federalfunding, has troubled the govern-ment since a botched merger

between two state carriers in 2007.Previous attempts to sell off the air-line have floundered, due to politi-cal and union opposition and a lackof potential buyers. It suffered a lossof ~57.65 billion in 2017-18.

Prior to the disclosure of theterms, there had been some expres-sion of interest from the Tata group,including remarks from ChairmanN Chandrasekaran in October thatthe group would take a look oncethe privatisation process wasfinalised. In January, Leslie Thng,CEO of Vistara, a JV between Tataand Singapore Airlines toldreporters its owners were open toevaluating a bid for Air India.

Vistara declined to comment.Singapore Airlines said its prioritywas the further expansion ofVistara, although it would keep itsoptions open with respect to AirIndia. Foreign partners will need tojoin hands with a local firm for anybid as control of the asset has to restwith an Indian entity.

NUMBERS GAMEOwned aircraft Number Total value (~ mn)

Airbus A321 8 23,400

Airbus A319 9 16,380

Boeing 787 2 14,300

Airbus A320-214 4 10,400

Boeing 747 3 975

Airbus A320-231 6 780

Total value 66,235Value of aircraft has been taken according to current list price

Source: Air India

Alleging that suitors are using“arm-twisting tactics” to force theCentre to sell Air India for cheap, aforum of 10 Air India unions hassaid it would take up the issuewith the Prime Minister’s Officeand the civil aviation ministry. In a statement, the forumreiterated its opposition to theprivatisation of the airline.

The forum comprises AirCorporations Employees Union, AllIndia Service Engineers’Associations, Air India EmployeesUnion, Aviation Industry EmployeeGuild, Air India Aircraft Engineers’Association, All India AircraftEngineers’ Association, Air IndiaEngineers Association, United Air India Officers Association, AllIndia Cabin Crew Association and All India Airline RetiredPersonnel Association. PTI

The National Company Law Tribunal(NCLT) on Wednesday reserved its orderon a plea challenging sale of BhushanSteel to Tata Steel by the committee ofcreditors (CoC). The CoC has approved a~352-billion deal along with a 12.27 percent equity in Bhushan Steel offered byTata Steel. However, some BhushanSteel employees had challenged thedecision before the NCLT, contendingthat Tata Steel was not eligible to bidunder Section 29 (A) of the Insolvencyand Bankruptcy Code (IBC).During theproceedings, advocate Rajiv Nayarrepresenting Tata Steel said the CoC hadfound its offer compliant to theregulations of the IBC. PTI

NCLT reserves order onplea against sale ofBhushan Steel to Tatas

Bidders arm-twistinggovtover sale: Unions

The Gateway, Kolkata, was launchedin December 2013

PHOTO: GATEWAY.TAJHOTELS.COM

8 COMPANIES MUMBAI | THURSDAY, 12 APRIL 2018 1>

THE INSTITUTE OF ROAD TRANSPORT100 Feet Road, Taramani, Chennai - 600 113

DIPR/1477/Tender/2018

TENDER NOTICESealed and superscribed tenders are invited separately from the Manufacturers under two

cover system subject to the conditions prescribed in the tender documents for the supply of

Preform Tube for Pet Bottle for AMMA Drinking Water Plant, Gummidipoondi operated by

M/s. SETC (TN) Ltd:-

TENDER SCHEDULE Tender document Cost including

GST in Rs.

EMD in Rs.Issue Date

Closing Date & Time

Opening Date & Time

13.04.2018to

14.05.2018

15.05.2018upto

15.00 Hrs

15.05.2018at

15.15 Hrs17,700/- 3,00,000/-

The tender schedule can be obtained in person on all working days between

10.30 Hours and 16.30 Hours and also be downloaded from the tender website

www.tenders.tn.gov.in. Such downloaded tender document shall be accompanied

by tender cost Rs.17,700/- (Inclusive of GST) by Demand Draft drawn in favour of

“The Director, Institute of Road Transport”, payable at “Chennai”. Any modification

(if any) in tender terms and tender invitation period will be uploaded in the website and the

tenderers are requested to go through the above website periodically. DIRECTOR

The Rubber Products Ltd.

Invitation for expression of interest to submit resolution plan

The Rubber Products Limited (“Corporate Debtor”) is a public limited company engaged

in the manufacturing of various industrial products of natural and synthetic rubber. It has

integrated Industrial plant located in Thane (Maharashtra). The Corporate Debtor is currently

undergoing a Corporate Insolvency Resolution Process pursuant to an order of Hon’ble

National Company Law Tribunal, Mumbai Bench (NCLT) dated 2nd

January, 2018.

Mr. Manoj Kumar Agarwal, acting in his capacity as Resolution Professional (RP) appointed

for Corporate Debtor, hereby invites Expression of Interest (“EOI”) from potential Resolution

Applicants for the purpose of submission of Resolution Plan for Debtor in accordance with

provisions of Insolvency and Bankruptcy Code (IBC) 2016.

The Last date of Submission of EOI is 23rd

April 2018 upto 5.00 pm.

Minimum qualifications for applicants to approach the Resolution Professional of the

Corporate Debtor for the purpose of participating in the process are as under:

For Body Corporate

1. Consolidated net worth of Rs 10 Crore or more at group level in the immediately

preceding completed financial year 2016-2017, and

2. Consolidated group turnover of Rs. 30 Crores or more for any of the preceding three

financial years.

For Financial Institution/Funds/PE Investor

1. Assets under Management of Rs 100 Crores or more as on immediately preceding

financial year 2016-17 or committed fund available for investment/deployment of Rs

100 Crores or more as on 31st

December, 2017.

The potential Resolution Applicants are required to submit their EOI in the prescribed

format for submission of EOI as uploaded on the website of the Corporate Debtor i.e.

www.rubpro.com and in accordance with terms and conditions mentioned therein. A non

– refundable Process participation fees of INR 29,500 (inclusive of taxes) would be levied

on the potential Resolution Applicant for the submission of the EOI (the details of which

are provided in the format for submission of the EOI). The shortlisted participants will be

required to deposit Earnest Money (EMD) of Rs. 10 Lakhs.

Interested applicants may submit the EOI as per the format given in the process document

by 23rd

April 2018 by emailing it at irp.trpl@gmail.com, or hand delivering it in a sealed

envelope to Mr. Manoj Kumar Agarwal, Resolution Professional, Malkani Chambers,

3rd

Floor, off Nehru Road, Vile Parle (East), Mumbai 400099. Post submission of the EOI

by potential Resolution Applicants in accordance with the terms and conditions stipulated

herein, the potential Resolution Applicants would be shor tlisted by the Resolution

Professional for their par ticipation in the next stage of the process upon (i) signing a non

– disclosure agreement for purpose of sharing of Information Memorandum in accordance

with the Code; and (ii) providing any other information as may be required by the Resolution

Professional.

Note: The RP may on the direction of committee of creditors of Corporate Debtor have the

right to cancel or modify the process and/or disqualify any interested party without assigning

any reason and without any liability. This is not an offering document. Applicants should

regularly visit the website referred to above to keep themselves updated regarding

clarifications, amendments or extension of time, if any.

Sd/-

Date: 12.04.2018 CA Manoj Kumar Agrawal

Place: Mumbai Resolution Professional

(The Rubber Products Limited)

Valson Industries Limited(CIN: L17110MH1983PLC030117)

Registered Office: 28, Bldg. No.6, Mittal Industrial Estate, Sir M. V. Road, Andheri (East), Mumbai - 400 059.Website: www.valsonindia.com, Email: pritesh@valsonindia.com

Tel: 022 4066 1000, Fax: 022 4066 1199

NOTICE

The Extra-ordinary General Meeting (EGM) of the Company will be held on Saturday, May 05, 2018 at 11.00 a.m. at the Registered Office of the Company situated at 28, Bldg. No. 6, Mittal Industrial Estate, Sir M. V. Road, Andheri (East), Mumbai - 400 059 to transact the business in terms of Notice of EGM dated April 05, 2018.The Company’s communication relating to E-Voting, inter alia, containing user ID and password along with the copy of the Notice of EGM is being posted to the Members directly.The E-Voting period begins from Wednesday, May 02, 2018 at 9.00 a.m. and ends on Friday, May 04, 2018 at 5.00 p.m. During this period Shareholders of the Company, holding shares either in physical form or in dematerialized form, as on the cut-off date Saturday, April 28, 2018 may cast their votes electronically.

By Order of the BoardFor VALSON INDUSTRIES LIMITED

Sd/-Mumbai Mr. Suresh N. MutrejaApril 12, 2018 Managing Director

HEAVY ENGINEERING CORPORATIONRANCHI - 834004

OPEN TENDER NOTICEHMBP: 1 Open Tender Enquiry No. PUR/HMB/18/968451/IS - 5324 dtd: 06.04.18Description : procurement of PlateTender Document sale start date: 07.04.18,Closing Date: 26.04.18 at 13.00 Hrs.Date of Opening & Time: 26.04.18,15.00 Hrs.For details refer our website and CPP Portal, Contact Person: R.K. JHA, 7547879022Email Id - rkjha@hecltd.com/purhmbp@hecltd.comFor details of tender please visit www.hecltd.com -> tender -> open tender

HEC BUILDS MACHINES THAT BUILD THE NATION