Online homestay aggregator Stayzilla, which became insolvent following an ugly spat between founders and its vendor JigSaw Solutions, is now up for grabs.
The resolution Professional (RP) has invited Expression of Interest (EOI) from potential resolution applicants to submit a resolution plan in accordance with the provisions of the Insolvency and Bankruptcy Code of 2016.
The National Company Law Tribunal (NCLT) Chennai ordered Stayzilla to become insolvent and pay the outstanding dues to the tune of Rs 1.7 crore to JigSaw Advertising and Solutions in September 2017. Following this, Stayzilla co-founder Yogendra Vasupal challenging the insolvency proceedings. The appeal was dismissed by NCLT in March.
The EOI also lists out the minimum qualifications for applicants to approach the RP to bid for the homestay aggregator. Applicants, as per the EOI, need to have a net worth of Rs 50 crore or more as of March 31, 2018. And this includes equity share capital, reserves, preference Capital and Miscellaneous Expenditure. The applicant must have the ability to infuse a minimum of Rs 20 crore cash. They should also not be a ‘disqualified person’ as per the Insolvency and Bankruptcy Code, 2016.
The deadline for expression of interest is May 16, after which applicants have a month to submit a resolution plan.
The spat between the founders and JigSaw dated back to February 24, 2017 when Stayzilla suspended operations claiming that it will restructure itself and reboot operations soon.
Following this, CS Aditya of JigSaw filed a criminal complaint against Vasupal and CFO Sachit Singhi for not paying him his dues to the tune of Rs 1.7 crore since January 2016.
Vasupal was arrested on March 14. The night before his arrest, Vasupal also put out a blog claiming that he was being harassed by his landlord and by Jig Saw Solutions. Voodoo dolls were allegedly sent to the CFO's house.
The battle, which started with Vasuapl’s arrest and his claims of being harassed by Aditya, got ugly after Aditya publicly put out what he claimed was proof that the company owed him Rs 1.7 crore.
After Vasupal received bail a month later, he then furnished proof of Aditya cheating them with photoshopped pictures as proof of delivery for Stayzilla’s advertising campaign.
The criminal case that was earlier filed is proceeding parallel. The trial is stayed and awaiting a quash hearing, while Jig Saw wants to seek a vacation of stay.