New Delhi: Sahara group is working hard to get its chief Subrata Roy released from jail at the earliest.
In latest efforts, the group is working on a deal with Mirach Capital, a Miami-based NRI family-owned debt fund, under which the US firm will invest about Rs. 12, 400 crore ($2 billion) in Subrata Roy led company.
Sahara Group plans to use about half of this amount to pay for Roy's bail with the rest of the amount likely to be used for paying off the company's outstanding loans to Bank of China.
The Supreme Court of India has asked Subrata Roy to deposit a sum of Rs. 10, 000 crore before the court could grant him the bail. Subrata Roy is serving his imprisonment in Delhi's Tihar jail since March 4, 2014.
The amount invested by Mirach Capital is supposed to be in the form of structured loans, not adding to Sahara's funds but helping in paying its debt to Bank of China.
As a securing amount for Roy's bail, the equities in Sahara's hotels overseas are said to be mortgaged to Mirach in order to welcome the loan for Rs. 4,000 crore ($650 million). The overseas hotels of the group include Grosvenor House, one of London's iconic hotels acquired in 2010 for 470 million pounds, Plaza Hotel, New York, acquired in 2012 for $570 million and Hotel Dream Down Town, New York, acquired in 2012 for $795 million.
And against Sahara's equities in India, the company has been reported to extend the loan of Rs. 2, 800 crore ($450 million). The Indian hotel properties include Sahara Star Hotels and Aamby Valley Hospitality.
Both these extensions in lieu of the mortgaged properties by Sahara combine to form a whooping amount of around Rs. 6,800 crore, the amount to be secured for Roy's bail.
In the recent development in the case last week, Supreme Court had given a green signal to Sahara Group to raise funds for Roy's release. However, the company's spokesperson refrained from commenting on the issue stating that the matter is sub-judice.
The funds raised from Mirach after paying of the debts of Bank of China will be routed through Bank of America after approval from RBI. And to ensure Subrata's active participation in the dealings, the court has even permitted Roy to be shifted to a guest house from his prison cell.
The entire issue got murkier when Roy failed to appear at a hearing in court following the tiff with market regulator Securities and Exchange Board of India (SEBI).
It should be noted that SC had ordered Sahara Group to manage a giant figure of around Rs. 20, 000 crore to repay its million of investors.