On February 4, two directors, Raj Kumar Jatia and Adarsh Jatia, had resigned from the company, according to BSE filings. Adarsh Jatia was also joint managing director.
The company could not be contacted for comment.
In its statement to the BSE, Asian Hotels said, “The company, being conscious of the fact that such impairment shall denude the enterprise value of the company…it was agreed effective measures be implemented inter-alia the impact of impairment be solely borne by the promoter family and underlying asset, i.e. Magus Estates and Hotels be replaced by Leading Hotels Limited.” The company said to protect the interests of minority shareholders, it had “implemented the rearrangement of the underlying asset” — Magus Estates and Hotels, a subsidiary of Fineline Hospitality.
Asian Hotels is the sole owner of Fineline Hospitality, which indirectly holds stake in Leading Hotels.
Leading Hotels is developing a hotel complex in Goa and an 18-hole, 72-par championship golf course, which would be managed by Four Seasons.
Magus Estates, which owns the Four Seasons property in Mumbai, was learnt to have cancelled the second phase of its project, owing to a change in Maharashtra’s policy on floor-space index for mixed-use projects. The company said the impairment on account of Magus was offset by capital reserves of $79.69 million (about Rs 400 crore) from the buy-back of Fineline’s entire shareholding.
After a high court order in 2010, Asian Hotels was split into Asian Hotels (West), Asian Hotels (North) and Asian Hotels (East), under Sushil Gupta, Shiv Jatia and Umesh Saraf, respectively.