Hotel Leelaventure will not avail of a bridge loan from Kohlberg Kravis Roberts (KKR) as the company, its lenders and the global investment firm could not agree on terms.
"As the terms could not be finalised to the satisfaction of the company, KKR and CDR Lenders, it was communicated by KKR in the meeting of the CDR Lenders held on May 20, 2014 that they would not be providing the bridge loan to the company," Hotel Leelaventure said in a filing to BSE.
Earlier, the hospitality chain had said that the terms of loan by KKR did not meet the it's requirements and had to be negotiated.
The company's board had authorised Vivek Nair, Chairman & Managing Director and Dinesh Nair, Co-Chairman & Managing Director to negotiate and finalise the terms and conditions of the bridge loan.
Hotel Leelaventure, which reportedly had a debt of around Rs 4,500 crore, was looking for the loan for meeting the debt service obligations of the company. In an earlier filing to the BSE, the company had said that in terms of Corporate Debt Restructuring (CDR) package being implemented, the company has to reduce its debts through sale of assets.
Shares of Hotel Leelaventure were trading at Rs 24.95 apiece on the BSE in the afternoon, up 5.50 per cent from the previous close.