ISLAMABAD: The Cabinet Economic Coordination Committee (ECC) asked the Aviation Division to define the terms of the $ 142 million refinancing for the Roosevelt Hotel, New York, in consultation with the Finance Division and the Bank Pakistan National (NBP).
PIA Investments Limited, in a letter written on November 17, 2020 to the Senior Vice President / Unit Head, NBP, Corporate Banking Center, states that in view of RHC’s cash constraints, the NBP loan of 142 million dollars as well as the mark-up will be rolled over for the next two years, assuring the bank that every effort is made to generate sufficient cash flow so that the principle and mark-up payments are made.
The ECC, at its meeting on December 31, 2021, considered a summary from the Aviation division, in which the refinancing of the principal amount of $ 142 million, as well as the mark-up payments by NBP for a further period of 2 years ending December 31, 2024 has been requested.
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The Aviation Division, in its summary, said a $ 142 million financing facility had been arranged by the finance division through NBP to repay outstanding loans, debts and indemnities. departure of RHC employees due to the closure of the hotel business in New York.
The principal amount of the loan, $ 142 million, is payable in four quarterly installments of $ 35.5 million starting December 31, 2021.
PIA-IL advised that it was unable to pay the loan principal amount and mark-up payments on behalf of RHC due to the closure / suspension of RHC, New York.
The ECC, at its meeting held on December 31, 2021 under the chairmanship of the Minister of Finance, Shaukat Tarin, approved the proposal of the Aviation Division with the stipulation that the refinancing modalities will be defined by the Division of l aviation in consultation with the Finance Division. and NBP.
Copyright Business Recorder, 2021