Interim loan offered does not meet needs: Leela

The board of the Leela group of hotels said the interim loan on offer, which it intended to use for debt servicing, did not meet its requirements.

The board met on Wednesday to review the progress of the sale of assets and also to assess the term sheets for a interim loan offered. The group did not disclose the company it was negotiating the offer with.

It has authorised Chairman and Managing Director Vivek Nair and Co-chairman and Managing Director Dinesh Nair to further negotiate and finalise the terms and conditions.

According to a Reuters report, US-based private equity player KKR & Co LP was in talks with the group for a loan of Rs 2,000 crore. This included pledging some assets the company has been trying to sell for some time.

The Leela had clarified it was in talks with various investors and lenders for raising funds to meet debt servicing obligations. The board had met in mid-February.