State Bank of India (SBI)-led consortium of banks has sold hospitality firm Hotel Leelaventure’s debt to JM Financial Asset Reconstruction Co. The State Bank of India (SBI)-led consortium of banks had restructured Hotel Leelaventure’s debt under corporate debt restructuring (CDR) mechanism effective January 2012.
The total debt of Hotel Leelaventure as on June 30, 2014 was about Rs 5,000 crore, of which about Rs 4,000 crore was from the CDR lenders.
The Reserve Bank of India (RBI) has recently permitted asset reconstruction companies (ARCs) to buy bad loans from their sponsor banks, provided these loans are auctioned in a transparent manner, on arm’s length basis, at prices determined by the market factors.
