Silverlink Resorts, DLF hospitality arm pays Rs 153 crore to settle dispute

The annual report for 2010-11 tabled by realty major DLF has revealed that its hospitality arm Silverlink Resorts has paid $33.80 million (around Rs 153 crore) as settlement for a dispute it had with an overseas investor. This pay off enabled DLF to divest its stake in the ultra-luxury hotel chain Aman Resorts. However DLF retained its stake in Aman Lodhi located in Delhi. During a conference call with analysts held on May 26 DLF officials disclosed that the company had appointed advisers to help divest its non-core assets so that the company can reduce its Rs 24,000-crore debt.

By paying $400 million to Adrian Zecha the founder of Silverlink Holdings in 2007, DLF had bought 97 per cent stake in the company. That left Adrian Zecha with three per cent stake. The Silverlink Holdings owned Aman Resorts has 23 hotels located in 12 countries. These hotels cater to a highly affluent clientele. Aman Lodhi which is a 68-room hotel located in central Delhi belongs to this chain and was opened in 2009.

A case was filed in the Singapore High Court for repurchase of convertible securities of Silverlink Resorts (formerly Silverlink Holding Ltd) held by some previous shareholders in exchange for secured convertible notes which were to be issued by the company. This happened some years before DLF acquired Silverlink.