Mirach hits back at Sahara, says loan deal off the table

  • Yashwant Raj, Hindustan Times, Washington
  • Updated: Feb 07, 2015 00:32 IST

Hit by accusations of forging documents, Mirach CEO Saransh Sharma on Friday took the loan deal off the table, saying he is only interested in outright acquisition now.

Mirach had offered Sahara a loan of $1.5 billion (Rs 9,150 crore) against a collateral of the group’s premium hotels in New York and London, in order to repay investors — a pre-condition for giving jailed Sahara chief Subrata Roy bail.

Sahara on Thursday accused Sharma of presenting forged documents to prove his ability to pay for the deal, a move seen by Mirach as a “breach of contract”.

When contacted on Friday, Sahara said it did not have any new comments to offer.

“Mirach is no longer considering an offer for the loan structure, however it remains ready, willing and able to facilitate an acquisition of these assets,” Sharma said in a statement. About forged documents, Mirach said a “simple meta-data test” will establish their authenticity.

Sharma also said he had conveyed the details of the negotiations so far to the amicus curiae appointed by the Supreme Court, regulators, Sahara’s legal counsel and his investors.

Mirach Capital was registered in December 2014, as HT first reported — just weeks before the offer was made, and was set up as a special purpose vehicle only to pursue this deal.

Sharma said Sahara always knew of his financial abilities: “Proof of Mirach’s financial capabilities were previously verified directly with Sahara’s lawyers.”

Sahara is no longer interested in the loan deal, said Mirach, and wants to sell the assets — The Plaza and Dream Downtown in New York and Grosvenor in London — after it realised it could lose the hotels “at a discount” because loan offers came with an impossibly hefty interest rate.

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