ISLAMABAD: Economic Coordination Committee (ECC) of Cabinet has directed Aviation Division to chart out modalities of re-financing of $ 142 million for Roosevelt Hotel, New York, in consultation with Finance Division and National Bank of Pakistan (NBP).

PIA Investments Limited, in a letter written on November 17, 2020, to senior Vice President/ Unit Head, NBP, Corporate Banking Centre states that in view of RHC’s cash constraints, NBP loan of $ 142 million along with mark-up be rolled over for next two years, assuring the bank that all-out efforts are being undertaken to generate sufficient cash flows in order that both principle and mark-up payments are made.

The ECC, in its meeting held on December 31, 2021, considered a summary of Aviation Division, in which re-financing of principal amount, i.e., $ 142 million along with mark-up payments by NBP for further period of 2 years ending on December 31, 2024 was sought.

ECC approves $10m to clear urgent liabilities of Roosevelt Hotel Corporation

Aviation Division, in its summary stated that financing facility of $ 142 million was arranged by Finance Division through NBP to pay off outstanding loans, liabilities and severance of employees of RHC due to closure of hotel business in New York.

The principal amount of the loan, i.e., 142 million is to be paid in four quarterly instalments of $ 35.5 million starting from December 31, 2021.

PIA-IL has informed that they are unable to pay the principal amount of the loan and mark-up payments on behalf of RHC due to closure/ suspension of RHC, New York.

The ECC, in its meeting held on December 31, 2021 with Finance Minister, Shaukat Tarin in the chair approved the proposal of Aviation Division with the stipulation that the modalities of re-financing shall be charted out by the Aviation Division in consultation with Finance Division and NBP.

Copyright Business Recorder, 2021