INSUBCONTINENT EXCLUSIVE:
Cash-strapped hospitality chain Hotel Leelaventure has defaulted in payment of quarterly interest of Rs 2.12 crore to Life Insurance
Corporation of India (LIC).
Hotel Leelaventure, which currently has a debt of over Rs 3,600 crore, had issued secured redeemable
non-convertible debentures on private placement basis aggregating to Rs 90 crores to LIC in December, 2008.
"The company has defaulted in
payment of quarterly interest of Rs 2.12 crore which was due on June 19, 2018," Hotel Leelaventure said in a regulatory filing.
Hotel
Leelaventure said its "operating cash flows are not sufficient to service its term loans and NCDs and the funds of the company are escrowed
with its lenders and are also monitored by the lenders".
"The company is pursuing with the lenders for debt restructuring," it added.
Hotel
Leelaventure said the total interest outstanding as on date is Rs 12.14 crore and principal redemption amount outstanding as on date is Rs
45 crore.
Earlier this month, Hotel Leelaventure's board approved a share issue of up to 125 crore shares on preferential basis to JM
Financial Asset Reconstruction Company for converting of part of debt into equity.
According to the BSE data, JM Financial Asset
Reconstruction Company had 26 per cent stake in the company as of March 2018.
