Indian government to begin selling Plaza owner’s domestic properties

Officials hope to recover $6B for defrauded bondholders

TRD NEW YORK /
Mar.March 29, 2016 04:01 PM

Subrata Roy’s Indian properties will be sold by the country’s capital markets regulator in hopes of compensating the mogul’s jilted bondholders.

India’s Supreme Court ordered the agency begin 86 of the Sahara India Pariwar boss’s domestic assets, with the aim of recovering 400 billion rupees ($6 billion), the Wall Street Journal reported.

Roy – the majority owner of The Plaza Hotel on Central Park South – has been in jail for over two years after failing to comply with a 2012 order to repay bondholders after an allegedly illegal debt issuance.

His bail is set at $1.5 billion. Sahara has already put $750 million towards that total. If the government’s’ sales net another $750 million, he’ll be released.

On Tuesday, Monaco-based investors David and Simon Reuben, who own The Plaza’s debt, canceled a planned foreclosure auction for the iconic 557,000-square-foot property, saying they would give Roy and his partners more time to pay off the note.

It’s not clear if the Indian government’s move will affect The Plaza situation. Roy bought his stake in that property in 2012 for $600 million. [WSJ]Ariel Stulberg


Related Articles

arrow_forward_ios
1 Central Park South, 1007/1009 and Valery Kogan (inset)

Opulent Plaza Hotel unit listed for $45M

The Plaza’s many lives: How moguls, labor fights and a changing city shaped an icon

The Plaza’s many lives: How moguls, labor fights and a changing city shaped an icon

Plaza PH buyer spends $29M to expand aerie

Plaza PH buyer spends $29M to expand aerie

How the Plaza was won: A look at Subrata Roy’s path to selling the landmark hotel

How the Plaza was won: A look at Subrata Roy’s path to selling the landmark hotel

How the Plaza was won: A look at Subrata Roy’s path to selling the landmark hotel

How the Plaza was won: A look at Subrata Roy’s path to selling the landmark hotel

Qatari group closes on $600M purchase of Plaza Hotel

Qatari group closes on $600M purchase of Plaza Hotel

United Capital Real Estate claims fraud in its own bid to buy the Plaza Hotel

United Capital Real Estate claims fraud in its own bid to buy the Plaza Hotel

Ashkenazy, Kingdom get extension to close on Plaza deal: sources

Ashkenazy, Kingdom get extension to close on Plaza deal: sources

arrow_forward_ios
Loading...