Hotel Leelaventure slips after defaults on interest payment

Hotel Leelaventure fell 2.16% to Rs 20.40 at 15:01 IST on BSE after the company said it defaulted in payment of interest and principal amount on debentures issued to LIC of India in December 2008.

The announcement was made after market hours yesterday, 17 April 2018.

Meanwhile, the S&P BSE Sensex was down 84.88 points, or 0.25% to 34,310.18.

On the BSE, 5.40 lakh shares were traded in the counter so far compared with average daily volumes of 1.32 lakh shares in the past two weeks. The stock had hit a high of Rs 21.45 and a low of Rs 19.85 so far during the day. The stock hit a 52-week high of Rs 27.25 on 10 May 2017. The stock hit a 52-week low of Rs 16.50 on 23 March 2018.

Hotel Leelaventure said it issued secured redeemable non-convertible debentures on a private placement basis aggregating to Rs 90 crore to LIC of India in December 2008.

The company said the amount of the default in payments of interest as of 31 March 2018 is totalling Rs 10.15 crore.

Leela said it has also not paid the third installment towards redemption of principal amount of Rs 22.50 crore on non convertible debentures (NCDs) due since 30 September 2016 and the fourth installment towards redemption of principal amount of Rs 22.50 crore on NCDs due since 30 September 2017.

The company said 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 monitored by the lenders. The company is pursuing with the lenders for debt restructuring, the company said in a statement.

Hotel Leelaventure reported net profit of Rs 40.65 crore in Q3 December 2017 as against net loss of Rs 10.39 crore in Q3 December 2016. Net sales rose 4.03% to Rs 203.61 crore in Q3 December 2017 over Q3 December 2016.

Hotel Leelaventure is one of the leading Indian luxury hospitality group.

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