Rating agency, ICRA has downgraded long term debt rating of Madhucon Projects’ hospitality arm Nama Hotels (NHPL) to ‘D’ from ‘BBB’ for delays in debt servicing. The instruments with ‘D’ rating are in default or are expected to be in default soon. The rating agency has downgraded the same due to delays in servicing loans by the guarantor Madhucon Projects.
NHPL is special purpose vehicle floated by Madhucon for vesting the assets of a hotel property in Hyderabad. Nama Hotels, set up in December 2007, is constructing a three cum four-star hotel property on 2.62 acres land parcel in Kukatpally abutting NH-9, Hyderabad. The proposed facility is slated to have 496 rooms (303 rooms - 4 star, 149 rooms - 3 star and 44 service apartments).
Madhucon Projects (MPL) is engaged in execution of infrastructure projects, such as construction of national highways, flyovers, dams, tunnels, aqueducts, bridges, coal handling plants, workshops property development projects including high rise structures, Hospitality and retail industry structures etc. and enjoying substantial non-fund based limits in the form of bank guarantees with banks under Multiple Banking arrangements.