The iconic elephant carving at the entrance of The Leela Palace New Delhi (Source: Instagram/The Leela) 

IBC: JM Financial Files Insolvency Case Against Hotel Leela Venture

Hotel Leela Venture Ltd. said JM Financial Asset Reconstruction Company Ltd. has filed an insolvency petition with the Mumbai bench of National Company Law Tribunal against the company.

The application has been filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, Hotel Leela Venture said in a filing to BSE. “The company is continuing to engage with prospective investors for a resolution,” it said.

On June 30, 2014, the erstwhile corporate debt restructuring lenders with exposure of 95.6 percent of the CDR debt had assigned their debt to JM Financial Asset Reconstruction Company and one lender with exposure of about 1 percent of the CDR debt to Phoenix ARC Pvt. Ltd.

Shares of Hotel Leeleventure closed at Rs 10.41 on the BSE, down 6.55 percent from the previous close.