The bank’s CEO Krishna Bahadur Adhikari said that they are currently discussing Amatya’s proposal. “The deadline given to Amatya is ending in mid-July. But he hasn’t paid any loan during this period,” said Adhikari, “We have forwarded his (Amatya’s) proposal to the bank board.”
A consortium of banks led by Nepal Bank had given loans worth Rs 1.31bn to construct the five-star property in the mid-90s. Mired in financial difficulties, Fulbari Resort has not paid the regular installment and interest of the loan for more than a decade. According to CEO Adhikari, if the Nepal Bank board decides on a time extension, the resort will get additional time to pay back the loans. “Otherwise, we will initiate the auction process,” he said. The resort owes nearly Rs 4bn of loans taken from Nepal Bank as well as Rastriya Banijya Bank, and the Employees’ Provident Fund. As the lead bank, Nepal Bank had initiated the auctioning of the hotel in the last fiscal year. But Amatya went to court to stop the process. However, the Patan High Court in the first week of August 2022 issued an order in favor of the bank, allowing it to proceed with the auction. The 165-room five-star hotel was one of its kind properties in Nepal when it began operation in the late 90s. The resort came into operation in 1998 when Nepal was celebrating the Visit Nepal year 98. Established to cater the high-end tourists, the hotel has its own golf course also. Four years ago, Amatya and Nepal Bank signed an agreement to reopen the resort after it was shut down in 2017 following a labor dispute. At that time, Amatya committed to repay the bank loan and take the remaining money by selling the land owned by the resort. In 2019, the resort decided to reopen under new management. The Nepal Bank agreed to debt restructuring after the resort decided to bring in Marriott International to manage the hotel. However, the outbreak of the Covid-19 pandemic spoiled the plan.
