Cash-strapped Hotel Leelaventure defaults on payment of Rs 21.2 mn to LIC

Hotel Leelaventure said the total interest outstanding as on date is Rs 138 million and principal redemption amount outstanding as on date is Rs 4.5 billion

Cash-strapped Hotel Leelaventure on Thursday said it had defaulted on payment of quarterly interest of Rs 21.2 million to Life Insurance Corporation of India (LIC). Hotel Leelaventure, which currently has a debt of over Rs 36.62 billion, had issued secured redeemable non-convertible debentures (NCDs) on private placement basis, aggregating Rs 900 million to LIC in December 2008. 

“The company has defaulted in payment of quarterly interest of Rs 21.2 million, which was due on September 19,” the hotel said in a regulatory filing. 

The debt-laden five star hotel chain said its operating cash flows were not sufficient to service its term loans