Hotel Leelaventure on Thursday said it has completed sale of its business to Canadian investment fund Brookfield and the proceeds of deal were used in payments to its lenders.
In March this year, Hotel Leelaventure had announced sale of its four hotels, including one in the national capital, and a property to Brookfield Asset Management for Rs 3,950 crore.
As indicated in the postal ballet notices dated March 18, 2019 and August 10, 2019, "... the business has been acquired by Brookfield and the total consideration payable to the company with respect to the transactions set out in the postal ballot notices has been received and paid to the various banks and financial institutions who were lenders of the company," Hotel Leelaventure said in a BSE filing.
Last month, the Securities Appellate Tribunal (SAT) had rejected the plea of FMCG major ITC against sale of Hotel Leelaventure's key assets to Brookfield for Rs 3,950 crore, boosting the troubled hotel chain's efforts to complete the sale of four of its five hotels and come out of the insolvency process.
The SAT also vacated an earlier stay where it had directed Leela not to declare the postal ballot results till the matter was pending before the tribunal.
In the regulatory filing in March this year the company had said proceeds of the sale "will be paid to the lenders of the company towards repayment of dues".
Shares of Hotel Leelaventure zoomed 19.87 per cent to trade at Rs 7.66 per scrip on BSE.