The National Company Law Appellate Tribunal (NCLAT) has approved the settlement proposal submitted by the promoter of Appu Hotels, which owns the Tamil Nadu-based luxury hotel brand Le Royal Meridien.

The appellate tribunal order also withdrew the resolution process of the company and restored Appu Hotel’s original board of directors. It has also ordered the resolution professional (RP) regarding the handover of all the past reports and accounts to the board. The RP is discharged from his responsibilities.

The hotel brands faced financial difficulties during the COVID pandemic and went for corporate insolvency proceedings. NCLT allowed the insolvency proceedings application originally filed by Tourism Financial Corporation of India in 2019.

The promoter of the hotel chain has raised Rs 420 crore loan from a private fund and received the approval from Committee of Creditors (CoC), and will resume operations of Hotel Le Royal Meridien is located at Guindy in Chennai and at Coimbatore on a full scale.