Hotel Leelaventure to finalise debt restructuring plan: Report

Hotel Leelaventure reportedly is planning to finalize its debt restructuring plan. The company, which has been reeling under debt of a little more than Rs 4,000 crore, is expecting an agreement on restructuring its debt to be finalised on April 27.

The company has not made payments on its loan since late January. After three months without payment, Indian lenders are required to classify loans as non-performing.

The Mumbai-based operator of luxury hotels, which has been posting losses for the past several quarters, in February, had decided to apply for restructuring of its debt. The amount of debt restructuring has not been revealed by the company.

The company has been trying to prune its debt for some time through sale of land, properties and hotels. It has also held talks with private equity companies and recently got high court’s grant for selling its Kovalam property to Travancore Enterprises, for a deal valued at Rs 500 crore. Leela had acquired the Kovalam property in 2005 for Rs 150 crore.

Hotel Leelaventure operates hotels and resorts in India. It also operates spas; and offers facilities for meetings and events, weddings, and social celebrations. The company’s portfolio includes luxury hotels and resorts primarily in Mumbai, Bangalore, Goa, Kovalam, Gurgaon, and Udaipur.