New Delhi: Hotel Leelaventure on Monday said its board will meet on 11 June to approve a share issue of up to 125 crore shares on preferential basis to JM Financial Asset Reconstruction Company for converting of part of debt into equity.

The hospitality chain currently has a debt of Rs3,662 crore. On 30 June 2014, the erstwhile corporate debt restructuring (CDR) lenders with exposure of 95.6% of the CDR debt had assigned their debt to JM Financial Asset Reconstruction Company Ltd and one lender with exposure of about 1% to Phoenix ARC Private Ltd.

“The Board of Directors of the company has been scheduled to be held on June 11, 2018 to approve enabling resolutions for issue of up to 125 crore shares to JM Financial Asset Reconstruction Company Ltd on preferential basis towards conversion of part of debt into equity," Hotel Leelaventure said in a filing to BSE.

According to the BSE data, JM Financial Asset Reconstruction Company Pvt. Ltd had 26% stake in the company as of March 2018.

Shares of Hotel Leelaventure Ltd on Monday closed at Rs17.40 on BSE, up 0.58% from previous close.

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