Mumbai: Hotel Leelaventure Ltd, which runs the Leela Palaces Hotels and Resorts, plans to raise as much as 1,000 crore by selling shares or other securities to pare debt.

The company’s board has approved an enabling resolution to raise the funds by selling shares, convertible debentures, global depository receipts, American depository receipts and or such other securities either through preferential issue or qualified institutional placement or private placement in one or more tranches at an appropriate time.

In a related development, the board approved sale of shares on a preferential basis to a promoter group company for an aggregate value not exceeding 35 crore, including premium, at a price determined according to the guidelines of the capital markets regulator.

The filing did not disclose the name of promoter group company.

Hotel Leelaventure was referred to corporate debt restructuring (CDR) last year.

Debt-laden firms are usually referred to the CDR cell of the lenders after a majority of them approve a recast, which could entail a lower interest rate, a longer repayment period, or the conversion of overdue interest into the loan principal. Hotel Leelaventure operates eight properties in Mumbai, New Delhi, Bangalore, Chennai, Gurgaon, Goa, Udaipur and Kovalam in Kerala.

Hotel Leelaventure’s loss narrowed to 57.14 crore in the March quarter from 142.18 crore in the year earlier because of a reversal of 57.14 crore in tax provision.

Net sales for the quarter rose 10.6% to 222.13 crore. As of March, the company’s consolidated total debt was at 2,578.86 crore, down 5% from the previous year.

Shares of Hotel Leelaventure rose 6.47% to 23.85 on BSE, while the exchange’s benchmark Sensex fell 0.68% to close at 24,549.51 points.

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