CHENNAI: Loss-making Sterling Holiday Resorts (India) Ltd., a company that sells holiday timeshares, has said that it has drawn up a three-year plan to settle its debt, refurbish its existing resorts and complete all pending projects.

Outlining the revival plan to presspersons on Monday, R. Subramanian, Chairman and Managing Director, said the company had already paid Rs.30 crore to creditors. It had a total liability of Rs.211 crore. "Interest was waived in all except one case and there is a marginal reduction in principal as well", he said. The relief would be around Rs.100 crore. The company had another Rs. 25 crore to pay immediately. It had decided to sell surplus assets to raise another Rs.50 crore to settle the debt, he added.

The company had tied up with three real estate operators to hasten the sale of surplus assets. Mr. Subramanian said Sterling Holiday would sell surplus assets in places like Puri and Darjeeling only to individuals who would give them back to the company on a 25-year lease. Around 250 units (cottages/rooms) had been identified as surplus. The company had 13 properties. Out of these, 1,100 rooms/cottages were operational now. The company was also in the process of getting shareholders' nod for a foreign currency convertible bond issue worth $15 million.

Mr. Subramanian said he had entered into an agreement with P.N. Mohan and Vivek Pai, other promoters, in October last year to acquire their 37 per cent stake in the company at Rs.20 per share. "Aout 80 per cent of the money has been paid and the remaining would be paid by March,'' he added.

Since 1995, the company had a paid-up capital of Rs.18.20 crore. This had since gone up to Rs.24.90 crore with the allotment of preferential shares (along with convertible warrants) to three entities — Yatish Trading, Infofile and Supcom Securities — which now hold 13 per cent, 9 per cent and 9 per cent, respectively in the company. A release said the preferential issue fetched the company Rs.45 crore. The company had run up an accumulated loss of Rs.135 crore.

Mr. Subramanian said it would take another couple of years to clean up the balance sheet. The company had one lakh timeshare owners and had seen a cash collection Rs.2 crore a month.

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