Hotel Leelaventure defaults on payment of interest to LIC

Cash-strapped hospitality chain Hotel Leelaventure has defaulted in payment of quarterly interest of Rs 2.12 crore to Life Insurance Corporation of India (LIC). Hotel Leelaventure, which currently has a debt of over Rs 3,600 crore, had issued secured redeemable non-convertible debentures on private placement basis aggregating to Rs 90 crores to LIC in December, 2008. “The company has defaulted in payment of quarterly interest of Rs 2.12 crore which was due on June 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”