Blue Coast Hotels

BlueCoast Hotels Limited received an order from a Recovery Officer attached to Justice R.M. Lodha Committee directing IFCI to remit Rs. 85 crores with interest from the auction proceeds of the Park Hyatt Goa Hotel property. The company had sought a refund of surplus auction amount lying with IFCI from the hotel property sale. The order is subject to the final outcome of proceedings pending before the Bombay High Court, Goa Bench. BlueCoast Hotels is exploring legal remedies to challenge the Recovery Officer's order.

BlueCoast Hotels Limited reported a net loss of Rs. 26.67 lakhs for the quarter ended September 30, 2025, compared to a loss of Rs. 130.88 lakhs in the previous quarter. The company's total income decreased to Rs. 57.35 lakhs from Rs. 110.02 lakhs in the prior quarter. The company faces significant financial distress with accumulated losses and negative net worth as of September 30, 2025. BlueCoast is in default on dividend payments of Rs. 485.09 lakhs on redeemable preference shares and redemption amount of Rs. 551.89 lakhs due on October 30, 2025. The company is under SEBI investigation for alleged violations and has filed a settlement application proposing payment of Rs. 78 lakhs. BlueCoast handed over its sole operational asset, Park Hyatt Goa Resort & Spa, in 2019 following Supreme Court directions, significantly affecting its operations. The company has filed claims for Rs. 8,500 lakhs from auction proceeds of the hotel property. Auditors have raised material uncertainty about the company's ability to continue as a going concern, though management believes future business plans and expected financial support from subsidiary BlueCoast Hospitality Limited will help meet obligations.

BlueCoast Hotels Limited has disclosed a default on payment of Rs 10.37 crore related to 0.01% Redeemable Preference Shares issued to promoters. The default amount comprises Rs 5.52 crore in principal and Rs 4.85 crore in dividend. The company has 11 holders of these securities. The preference shares have a 30-year tenure with redemption scheduled from October 30, 2023 to October 30, 2032, with 10% redemption annually starting from the 21st year. The company's total financial indebtedness stands at Rs 34.57 crore. BlueCoast has undertaken several restructuring measures including reducing the coupon rate from 10% to 0.01% per annum and converting portions of the preference shares into Compulsorily Convertible Preference Shares and subsequently into equity shares.