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Oyo Hotels & Homes files for bankruptcy under IBC 2016? Deets Inside

According to the latest reports, hospitality service providing brand Oyo Hotels & Homes has filed for bankruptcy under IBC 2016. Insolvency resolution petition filed by the creditor on basis of the contractual dispute of Rs 16 lakh

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Owing to the pandemic Coronavirus outspread there is still uncertainty in the market and there are several brands that suffered losses due to prohibition on public gathering. The hospitality service providing brand, OYO has filed for bankruptcy under IBC 2016 according to the latest reports. The spokesperson stated that the insolvency resolution petition filed by the creditor on basis of the contractual dispute of Rs 16 lakh. The founder and CEO, Ritesh Agarwal took to his Twitter handle and put forward the clarification.

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According to the latest report by YourStory, the National Company Law Tribunal (NCLT) has admitted a petition for the commencement of corporate insolvency proceedings against OYO Hotels & Homes Pvt Ltd, the subsidiary of OYO Group, on March 30, 2021, over the plea filed by its creditor Rakesh Yadav. The spokesperson from the OYO informed the outlet, “We are surprised to hear that the Hon’ble NCLT has admitted a petition against OHHPL, a subsidiary of OYO for Rs 16 lakh in a contractual dispute, which dispute is not even with this subsidiary. We have filed an appeal. The matter is sub-judice and we would refrain from commenting further on the merits of the matter at this stage.”

On Wednesday, Ritesh Agarwal in one of his Tweet posts shared, “There is a PDF and text message circulating that claims OYO has filed for bankruptcy. This is absolutely untrue and inaccurate. A claimant is seeking INR 16Lakhs (USD 22k) from OYO’s subsidiary leading to a petition at NCLT.”

For the unversed, the company had apparently stated earlier that it is recovering from the losses caused due to the pandemic outspread. The brand was also reportedly planning to raise funds through an IPO launch somewhere around February. This Hospitality firm is also said to have promised its employees to cover COVID-19 vaccination costs for all its employees and their respective family members in India.

For all the latest updates, stay hooked on to The Live Mirror.

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