Debt-laden Country Club going to NCLT?

Reports Rs24cr loss for Q3

MUMBAI: Country Club Hospitality & Holidays (Country Club) with operations in about 10 countries and with more than 20 group entities including step-down subsidiaries is also going to the fold of National Company Law Tribunal (NCLT).

The company, which has been in the red for the past several quarters, has reported a loss of Rs23.80 crore for the quarter ending December 31, 2019 compared with a much lesser loss of Rs7.92 crore the time share operator has posted for the same period last year.

The company has defaulted on repayment of bank loans for the quarter ended December 31, 2019, according to its auditors. “Two of its (company’s) financial lenders have classified their outstanding dues as NPA,” the auditors have added.

The auditors have also informed that one of the financial lenders of the company has filed petition before NCLT, Hyderabad, which is pending for admission as on date.

The company has not been regular on the payments of statutory dues with the government authorities and have even defaulted on such dues recently.

Country Club, which has been struggling financially for some time now with many of its members having stopped visiting their properties, has witnessed a heavy decline in its revenues to Rs35.06 crore during the quarter under review compared with Rs68.75 crore for the same period last year.

On the stock markets, the shares are traded at around Rs3 a piece taking the market capitalisation down close to just Rs50 crore as of Friday.

 

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