Loss-making Hotel Leelaventure on Friday stated in an exchange notification that it has defaulted on its quarterly interest payment of Rs 2.12 crore due on June 19 to Life Insurance Corporation of India (LIC).
The company had issued secured redeemable non-convertible debentures (NCDs) on a private placement basis aggregating to Rs 90 crore to LIC in December 2008.
“We further wish to inform you that total interest outstanding as on date is Rs 12.14 crore and principal redemption amount outstanding as on date is Rs 45 crore,” Hotel Leelaventure said in the statement.
The company pointed out that 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 said.
Earlier this month, Hotel Leelaventure said it planned to issue up to 125 crore shares to JM Financial Asset Reconstruction Co. The shares would be issued on a preferential basis toward conversion of part of debt into equity, the company had said in an exchange filing.
The lenders of Hotel Leelaventure, with an exposure of 95.6% of corporate debt restructuring (CDR), had sold their loans to JM Financial ARC. The total loans that were restructured under CDR were about Rs 4,000 crore. One lender with an exposure of about 1% of the CDR debt had assigned its debt to Phoenix ARC on June 30, 2014, according to a company filing.
As per Bloomberg, the total debt of Hotel Leelaventure has come down from Rs 3,954.15 crore at the end of FY17 to Rs 3,192.69 crore as on March 2018.
Shares of Hotel Leelaventure closed at Rs 17.80 on the BSE on Friday.