The promoters of Asian Hotels (West) have secured a new shareholder with whom they plan to revive the five-star Hyatt Regency hotel in Mumbai via an injection of fresh funds, as reported by the Hindu Businessline.

With this plan, the promoters intend to withdraw the company and the hotel from the current bankruptcy proceedings.

The hotel, which is located opposite Mumbai International Airport in the Indian state of Maharashtra, lost business because of travel restrictions imposed in the wake of the Covid-19 pandemic.

In September 2022, the company went into bankruptcy due to its inability to pay suppliers and staff.

About six applicants, including K Raheja Realty and Panchshil Group, are reported to have submitted resolution plans.

The former promoters Sudhir Gupta and Sandeep Gupta informed the resolution specialist last week about their agreement with Robust Hotels, which owns roughly 18% of Asian Hotels (West), to pull out the property and the entity from the bankruptcy court.

This move is expected to resurrect the company and repay all its outstanding dues to lenders and creditors, according to the media outlet.

The hotel will resume operations and create new jobs once the insolvency proceedings are over, the promoters stated.

The total claims amount to more than Rs3.5bn ($42.14m) and out of this amount, financial creditors are claiming Rs2.92bn.

A major component of the lenders' claims is held by UV Asset Reconstruction Company, which was assigned by lender Yes Bank.