new delhi facing a possible sale of its grosvenor house hotel in london by lenders sahara today said it is working on a refinancing transaction to repay the loans to bank of china and regain control of the iconic property the crisisridden group said that the london hotel is being treated under default because bank of china has declared an event of default on the us loans due to some technical breaches in the financial covenants the loan on saharas three hotels grosvenor house in the uk and two other prime hotels the plaza and dream downtown in new york from bank of china is cross collateralised and cross guaranteed bank of china put the london hotel under administration last night for recovery of its loans while deloitte and realty consultant jll have been mandated to find a buyer for the property estimated to be worth about rs 5000 crore sahara group which has been trying to raise funds to secure release of its chief subrata roy from jail further said the debt servicing for the uk and us loans has always been completely proper and timely the three overseas hotels have been at the centre of these fundraising plans the group said there has been technical breaches of the financial covenants like dscr debtservice coverage ratio and debt service yield etc in the loans on the us hotels because of which bank of china has declared an event of default on the us loans but because of cross collateralisation loan on grosvenor house hotel also is being treated under default a sahara spokesperson said in a statement hence bank of china has accelerated the loans and appointed an administrator who would have to take such actions in the interest of the company owning grosvenor house hotel to pay the creditors boc one of the actions being contemplated by administrator is the sale of grosvenor house hotel to pay the loan of bank of china however this action by the administrator does not preclude us to keep working on the refinancing transaction but now we would have to proceed with refinancing transaction with the consent of the administrator which we will be taking after we are able to get the loans refinanced then the administrator will pass the control back to the sahara directors and we feel confident that we shall be able to get these loans refinanced soon as we are working on that