Will hotels’ sale help Leelaventure?

Hotel Leelaventure, after market hours, has informed the exchanges that it has engaged JM Financial Institutional Securities for sale of its Chennai and Goa hotels. It appears the company plans to sell hotels to pare debts. Hotel Leela’s debt is at more than ₹5,000 crore. Losses for 10 consequent quarters have shrunk its net worth and the debt-to-equity ratio has ballooned to nearly 11 times. The company has also defaulted on servicing its debt to LIC for three quarters.