Leelaventure posts ₹4.72 crore loss in third quarter

Our Bureau Mumbai | Updated on February 10, 2020

Hospitality firm Hotel Leelaventure has reported a net loss of ₹4.72 crore for the quarter ended December 31, 2019, in comparison to a profit of ₹3 crore in the corresponding quarter of the previous fiscal.

However, if proceeds from the sale of assets and investments to Brookfield is considered then the company made a profit of ₹201.23 crore. The consolidated financial results are not prepared since company sold its subsidiary as a part of the transaction, Leelaventures informed the exchanges on Monday.

BusinessLine in March 2019 had reported that the debt-laden hospitality firm would sell its assets to Canada-based private equity firm Brookfield Asset Management for ₹3,950 crore. In FY18, the hospitality major had borrowings to the tune of ₹3,800 crore.

In order to resolve the company’s debt problem, Leelaventure transferred its hotel business undertakings at New Delhi, Udaipur, Bengaluru, and Chennai, hospitality and hotel operations business. Along with this, it sold 100 per cent shareholding in its subsidiary company that owns property at Agra and all intellectual property owned by the company used in and held for use in the hotel owned and managed by it.

Hotel Leela’s Mumbai property which is close to the Mumbai airport was in dispute with the Airports Authority of India as it had claimed ₹807.05 crore as on January 31, 2019 towards rent and minimum guarantee amount in respect of a lease of 11,000 “The company is disputing the claim on several grounds and based on the legal opinion obtained, the liability is contingent in nature, Hence, no provision is made for the claim.”

The company also informed that after SEBI sent a notice for non-compliance with regard to the number of Directors on the board of the company, Madhu Nair, wife of co-chairman and Managing Director Dinesh Nair, has been reappointed Non-Executive Non-Independent Director.

Published on February 10, 2020

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