By Craig Karmin
India's Sahara Group is edging closer to parting with its three
prized hotels in New York and London as the company tries to free
its chairman from jail.
Sahara has hired JLL to sell the Dream hotel in downtown
Manhattan, and the real-estate broker is expected to start
marketing the property by early next month, according to people
familiar with the matter.
The Indian company also has been talking to brokers about a sale
of the Plaza Hotel in New York, though nothing appears imminent,
these people said.
Sahara's other prestige hotel, the Grosvenor House in London,
was seized in March by Bank of China , the company's lender on the
property, after Sahara defaulted on the debt. The bank hired
Deloitte LP and JLL to market the hotel, and they expect to have a
buyer around the end of the month, say people familiar with the
process.
The Indian conglomerate has been trying to raise $1.6 billion in
bail money for its chairman, Subrata Roy, who has been in a New
Delhi jail for more than a year on contempt charges.
Sahara is in discussions with India's Supreme Court and recently
told court officials it has the bail money for Mr. Roy. But the
court on Thursday said it was deferring any immediate decision on
his release, and it isn't clear how much longer Mr. Roy will remain
in jail.
A Sahara spokesman didn't respond to a request for comment.
The developments this week were the latest in the long-running
saga surrounding Mr. Roy and the company he founded in 1978. The
Indian Supreme Court charged him with contempt and for failing to
repay debts of about $6 billion to the company's bondholders.
Sahara and Mr. Roy, who surrendered to police in February 2014,
have denied the charges and have said the debt is paid.
Sahara acquired the Grosvenor House in 2010 for GBP470 million.
In 2012, it paid about $570 million for a 75% stake in the Plaza
and more than $200 million for the Dream. The company borrowed
about $900 million from Bank of China to finance the acquisitions,
according to people close to Sahara.
The Plaza, one of the world's most famous hotels, might prove to
be the most difficult for Sahara to sell. The previous owner
converted several floors to private residences, and Saudi Prince
al-Waleed bin Talal owns a minority stake in the hotel. He would be
in position to influence or even block a sale of the controlling
stake, say people familiar with the arrangement.
Saurabh Chaturvedi contributed to this article.
Write to Craig Karmin at craig.karmin@wsj.com
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