Leela seeks shareholders’ approval to sell Delhi and Chennai properties

Hospitality chain Hotel Leelaventures today said it is seeking shareholders' nod to sell properties in Chennai and Delhi to pay off debt. The company, which sold its Goa hotel in September last year, has sought approval from its share holders "for commencement of process of sale of certain undertaking of the company i.e. The Leela Palace, Chennai and/or The Leela Palace, New Delhi." Besides, it has also sought shareholders' nod to "increase limits for making investments, give loans, guarantees and provide securities beyond the prescribed limits" to up to Rs 1,000 crore from the present Rs 500 crore, the company said in a BSE filing.

"The company has been seeking a viable restructuring package from its lenders, but the lenders have advised that the debt level of the company to be reduced," it said. It further added: "Pursuant thereto, the board at its meeting held on August 1, 2016 have subject to approval from its shareholders... approved the commencement of the process of sale and transfer of the undertaking of the company pertaining exclusively to the Leela Palace, Chennai and The Leela Palace, New Delhi." 

Located at Adyar Sea Face in the city, the Leela Palace, Chennai has a capacity of 326 guest rooms while the Leela Palace, New Delhi has a capacity of 254 guest rooms and is located in the Chanakyapuri area. It further said that JM Financial Institutional securities has been given the exclusive mandate as financial advisors for the sale of the both hotels. 

On September 11, Hotel Leelaventure had said that it has entered into a pact with Malaysia-based MetTube to sell Goa property for a consideration of Rs 725 crore as part of its debt restructuring process.