Hotel Leelaventure defaults in payment of Rs 22.5 cr to LIC

Cash-strapped Hotel Leelaventure Monday said it has defaulted in payment of principal redemption amount of Rs 22.5 crore to LIC of India for secured non-convertible debentures.

The company had issued secured redeemable non-convertible debentures on private placement basis aggregating to Rs 90 crore to LIC of India in December 2008, Hotel Leelaventure said in a regulatory filing.

"We wish to inform you that the company has defaulted in payment of principal redemption amount of Rs 2,250 lakh which was due on September 20, 2018," it said.

The total interest outstanding is Rs 13.80 crore while the outstanding principal redemption amount is Rs 67.5 crore as on date, it added.

The company's 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 the inflows and outflows are also monitored by the lenders," Hotel Leelaventure said.

It is "evaluating various options for a viable restructuring, including sale/monetisation of non-core assets, sale of hotels, equity infusion and debt refinancing by investors," the company added.

Last month, the company had stated that it had defaulted in quarterly interest of Rs 2.12 crore to Life Insurance Corporation of India (LIC).

The hospitality chain had received shareholders' approval to sell the company's land in Pune to Leela Lace Holdings Pvt Ltd for a consideration of Rs 130 crore.

The company is reported to have a debt of around Rs 3,000 crore.