Traders check-out of Hotel Leela

Hotel Leelaventure opened weak today, down almost 6%. Though it has recovered since then, it remains in the red, at Rs.22.80, a decline of over 3%.

The company informed the exchanges on Friday late evening that it was stipulated to pay Rs.22.50 crore towards first installment on March 31, 2014. This, the company has not been able to pay. Further, the Company has also not paid the quarterly interest, which fell due on June 19, 2014 and September 19, 2014.

Though the company did not divulge the name of the institution to whom the payment was due, unconfirmed news is that it was LIC. This default goes to further exacerbate the feeling of unease for the company, which continues to grapple with huge debt issues.