JM Financial Asset Reconstruction Co has increased stake in Hotel Leelaventure to 48.80 per cent with allotment of 13.34 crore shares upon conversion of debt.
As part of debt restructuring, JM Financial Asset Reconstruction Co Ltd (JMFARC) had issued a notice for conversion of debt into equity to Hotel Leelaventure on April 10, 2017.
This was in accordance with provisions of master restructuring agreement signed in September 2012, JMFARC said in an intimation to the BSE.
Subsequently, JMFARC has acquired 13.33 crore shares carrying voting rights translating into 22.23 per cent stake in the hospitality chain.
Moreover, JMFARC continues to hold 15.94 crore pledged shares aggregating 26.57 per cent stake.
Thus, the total holding of JMFARC in Hotel Leelaventure after the transaction stands at 48.8 per cent.
JMFARC had earlier held 34.17 per cent stake in the hospitality chain.
Debt-laden Hotel Leelaventure had sold its Goa property for a consideration of Rs 725 crore in 2015. Its debt had reportedly run up to Rs 5,000 crore.
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