OPEN APP
Home / Companies / News /  JM Financial ARC files insolvency case against Leela Hotelventure

NEW DELHI : JM Financial Asset Reconstruction Company Ltd has filed an insolvency case against Leela Hotelventure Ltd at the National Company Law Tribunal (NCLT), Mumbai, said a BSE filing on Tuesday. Leela Hotelventure, which has an outstanding debt of around 3800 crore, has been in talks with Canada-based Brookfield Asset Management to sell its assets to the latter to pare debt.

The deal, which will see Brookfield buying a bouquet of hotel assets from Leela for around 4500 crore, is expected to be signed anytime now.

"The company is continuing to engage with prospective investors for a resolution," said Leela Hotel said in the filing.

Mint reported on 17 December that the company is close to buying at least four of five luxury hotels and a large land parcel owned by Leela Hotelventure. The Mumbai-based hotel chain owns five luxury hotels comprising over 1,400 rooms in New Delhi, Bengaluru, Chennai, Mumbai and Udaipur. Brookfield is likely to buy at least four of these properties and a large land parcel in Agra. As part of the deal, Brookfield is likely buyout the Leela brand as well.

In 2014, Hotel Leelaventure had transferred its loans from 14 creditors to asset restructuring firm JM Financial ARC post failure of its corporate debt restructuring plan. In September 2017, it allotted over 160 million shares worth about 275 crore to JMARC on conversion of debt to equity. JMARC owns 26% in Hotel Leela Venture. The bulk of the proceeds from the transaction was expected used to repay the 14 lenders.

Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.

Recommended For You

Trending Stocks

×
Get alerts on WhatsApp
Set Preferences My ReadsWatchlistFeedbackRedeem a Gift CardLogout