An employee reads a document behind a service counter inside a financial institution. (Photographer: Billy H.C. Kwok/Bloomberg)

JM Financial Asset Raises Stake In Hotel Leelaventure To 48.8%

JM Financial Asset Reconstruction Co Ltd. (JMFARC) has increased stake in Hotel Leelaventure to 48.8 percent with allotment of 13.34 crore shares upon conversion of debt.

As part of debt restructuring, 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 percent stake in the hospitality chain. Moreover, the company continues to hold 15.94 crore pledged shares aggregating 26.57 percent stake.

Thus, the total holding of JMFARC in Hotel Leelaventure after the transaction stands at 48.8 percent. JMFARC had earlier held 34.17 percent 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.