Debt-ridden Leela selling Goa & Chennai resorts
PTI, NEW DELHI | 03 March 2015 18:21 IST
Hospitality chain Hotel Leela Venture plans to sell its properties in Goa and Chennai as it looks to cut debt.
"In accordance with the powers delegated by the company's board, the Assets Sale Committee, in its meeting held on March 2 has decided to commence the process for sale of its hotels in Goa and Chennai," Hotel Leelaventure Ltd said in a filing to the BSE.
The company said it has engaged JM Financial Institutional Securities for sale of its Chennai and Goa hotels.
"Accordingly, an advertisement is being released inviting interested parties to submit their expressions of interest to JM Financial," Hotel Leelaventure added.
Commenting on the development, Hotel Leelaventure Chairman and Managing Director Vivek Nair said: "As part of the restructuring programme, the company has embarked on an asset light strategy to pare down its debt and has appointed JM Investment Banking as its financial advisor. As part of this process, expressions of interest are being invited for The Leela Goa and The Leela Palace Chennai."
Commenting on the development, Hotel Leelaventure Chairman and Managing Director Vivek Nair said: "As part of the restructuring programme, the company has embarked on an asset light strategy to pare down its debt and has appointed JM Investment Banking as its financial advisor. As part of this process, expressions of interest are being invited for The Leela Goa and The Leela Palace Chennai."
The company plans to divest in select hotels while continuing to grow through managing and operating new hotels under The Leela brand, he added.
The company reportedly had a debt of around Rs 4,500 crore as of last year.
As per the terms of a Corporate Debt Restructuring (CDR) package, the company had to reduce its debts through sale of assets.
The company reportedly had a debt of around Rs 4,500 crore as of last year.
As per the terms of a Corporate Debt Restructuring (CDR) package, the company had to reduce its debts through sale of assets.
Last year, the company had failed to avail of a bridge loan from Kohlberg Kravis Roberts (KKR) as the company, its lenders and the global investment firm could not agree on terms.
In 2011, Hotel Leelaventure sold off its luxury hotel Leela Kovalam in Kerala for Rs 500 crore to Travancore Enterprises. In 2013, it had sold its IT Park Building in Chennai for Rs 170.17 crore to Reliance Industries.
In 2011, Hotel Leelaventure sold off its luxury hotel Leela Kovalam in Kerala for Rs 500 crore to Travancore Enterprises. In 2013, it had sold its IT Park Building in Chennai for Rs 170.17 crore to Reliance Industries.
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