Tulip Hotels Faces Liquidation After Failed Insolvency Resolution

Tulip Hotels is set for liquidation following an unsuccessful insolvency resolution process. The Mumbai bench of the National Company Law Tribunal (NCLT) initiated the Corporate Insolvency Resolution Process upon a plea by Yes Bank due to defaulted guarantees. With no bids received, liquidation is now underway.

Tulip Hotels is heading towards liquidation after the National Company Law Tribunal (NCLT) directed this course of action. The decision follows the failure to secure any bidders during the insolvency resolution procedure.

Yes Bank's plea highlighted that two corporate guarantees worth Rs 900 crore, provided by Tulip Hotels for loans to Cox & Kings and EzeeGo One Travel and Tours Ltd., had defaulted. Hence, the financial crisis culminated in a Corporate Insolvency Resolution Process (CIRP) for Tulip Hotels on May 16, 2023.

No resolution plan surfaced during the CIRP's 180-day limit, leading the Committee of Creditors (CoC) to reject an extension. J C Flowers Asset Reconstruction Pvt Ltd, representing a 70.83% voting share in CoC, consented to liquidation on December 5, 2024, sealing the fate of Tulip Hotels as ordered by NCLT on January 16, 2025.

(With inputs from agencies.)