Cash-strapped hospitality chain Hotel Leela venture has defaulted in payment of quarterly interest of Rs. 2.12 crore, which was due on September 19 to Life Insurance Corporation of India. Hotel Leela venture, which currently has a debt of over Rs. 3,600 crore, had issued secured redeemable non-convertible debentures (NCDs) on private placement basis aggregating to Rs. 90 crore to LIC in December 2008.
“The company has defaulted in payment of quarterly interest of Rs 2.12 crore, which was due on September 19, 2018,” Hotel Leelaventure said in a regulatory filing.
Hotel Leelaventure said its operating cash flows are not sufficient to service its term loans and NCDs and the funds of the company are escrowed with its lenders and are also monitored by the lenders.