OYO declares bankruptcy? The reality is as follows:
On tuesday (April 6), several websites announced that oyo had filed for bankruptcy under the IBC 2016 and that the NCLT had ordered the start of a corporate insolvency resolution process for oyo Hotels and Homes Private Limited.
Ritesh Agarwal, the founder and CEO of oyo, has dismissed claims that the company has applied for bankruptcy, calling the reports "false news." "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," He conveyed in several tweets. Further, a spokesman from oyo added "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.”
Ritesh Agarwal, the founder and CEO of oyo, has dismissed claims that the company has applied for bankruptcy, calling the reports "false news." "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," He conveyed in several tweets. Further, a spokesman from oyo added "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.”
Agarwal added, "OYO has paid that under protest and amount already banked by the claimant. oyo has also appealed with the NCLAT about the matter. oyo is recovering from the pandemic steadily and our largest markets are operating profitably,"
The corporate insolvency resolution procedure of oyo Hotels and Homes was issued by the NCLT's ahmedabad division on march 30, according to previous reports.