Hotel Leelaventure Ltd has received a 24-month moratorium for the outstanding principal amount of Rs 3,000 crore it borrowed from a consortium of 17 banks.
It applied for corporate debt restructuring (CDR) in February 2012. At the September 12 CDR meeting held with the banks, Leelaventure was told to repay all its outstanding principal amount in eight years from January 2014. It also has to pool in all its hotel properties (other than the Bangalore hotel) as security against the loan amount from the CDR lenders as per a report in Business Line.
The pooled securities include the company’s hotels in Mumbai, Goa, Udaipur, Delhi and Chennai.
As per the CDR package, Leelaventure has been given a 23-month moratorium for the interest portion too. The total interest, at 11 per cent per annum, will be converted into Funded Interest Term Loan (FITL) and need to be serviced from January 2014.
Besides, the company has agreed to sell its non-core assets and realise about Rs 620 crore. It will pursue an asset-light strategy for growth, by selling one of its existing hotels, taking it back on management contract and using the proceeds to cut debt, Vivek Nair, Vice-Chairman and Managing Director, Hotel Leelaventure Ltd, told Business Line.
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