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Leela promoters curious over ‘sale’ of hotel group (IANS Exclusive)

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New Delhi, Feb 14 (IANS) In a curious tale of a transaction taking place without the owner’s knowledge, embattled Hotel Leela Ventures Company Secretary Alen Fernes wrote to both NSE and BSE surveillance departments on February 12 saying “We wish to clarify that the company in consultation with lenders is evaluating various options and there is no binding contract with any investor as on date either for investment in the company or for sale of company’s assets.

Are Brookfield and JM Financial then trying to hoodwink shareholders and lenders by running canards in media?

The story, in circulation since September last, has not ended as it awaits the nod from one of the lenders. Two other suitors are also in the race, but they have been shut out because of payment of exorbitant minimum guarantees.

In parallel, JM ARC has moved National Company Law Tribunal (NCLT) in the matter initiating bankruptcy proceedings against the hospitality major.

The dispute over the Mumbai property remains as AAI has unilaterally terminated the lease of 18,000 sq mts of land on which the Mumbai hotel is built and have commenced eviction proceedings. Based on legal advice, Leela contemplates legally challenging it.

Brookfield and JM claim that they will carve Leela into a new company without the Mumbai property as part of the deal. JM holds 26 per cent in the company, controlling 96 per cent of the total debt of Rs 6,164 crore, while the Nair brothers, Deepak and Vivek, control 47 per cent of the shareholding with as much as 96 per cent of their shares already pledged to lenders. ITC, which also has a large hospitality business, owns 7 per cent.

Leela’s losses are mounting, up from Rs 7 crore to Rs 89 crore for the nine months period of 2018-19 for the corresponding period over the previous year.

This comes against a backdrop of a series of stories appearing in media on how Canadian company Brookfield Asset Management is set to carve Leela into a new company.

On February 12, at the Leela board meeting which approved the unaudited financial results for the third quarter, the company reiterated that the erstwhile CDR lenders with exposure of 95.6 per cent of the CDR debt assigned their debt to JM Financial Asset Reconstruction Co and one lender with exposure to one percent of the CDR debt to Phoenix ARC Pvt Ltd on June 30, 2014.

The company has been evaluating various options for a viable resolution, including sale/monetisation of core assets, sale of hotels, equity infusion etc.

Moreover, the independent auditor’s review report on standalone unaudited financial results by N.S. Shetty & Co Chartered Accountants throws into stark relief certain inaccuracies in the results. For instance, Note 7 to the statement is about non-provision of interest for the quarter Rs 22,331 lakh, and till December 2018, Rs 368,011 lakh payable to ARCs.

If interest provision was made in accordance with the intimation received from the ARCs, the finance cost and the loss for the quarter and the nine months ended would have been higher by Rs 22,331 lakh and Rs 64,866 lakh respectively.

After redflagging this, it highlights in Note No 8 to the statement, regarding non provision of rent and minimum guarantees claimed by the Airport Authority of India amounting to Rs 31,119 lakh up to July 31, 2017 in respect of lease of 11,000 sq mts of land in Mumbai.

–IANS
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Dr. Abhishek Verma Dedicates a Shelter in Memory of His Mother, Veena Verma, at KGMU; Inaugurated by Daughter Nicolle Verma

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World-renowned business tycoon Dr. Abhishek Verma has supported Foodman Vishal Singh’s Hunger-Free World mission. In memory of his mother, Late Veena Verma, who was a 3 term Rajya Sabha MP.

Dr. Verma dedicated a state-of-the-art free permanent shelter for the attendants of patients at KGMU Medical University, Lucknow, under the aegis of Vijay Shree Foundation. His daughter, Nicolle Verma, inaugurated the shelter.

During the event, Foodman Vishal Singh honored Nicolle Verma by presenting her with a memento. Mrs. Nidhi Sharma and Avantika Yadav, associated with the organization, welcomed her with garlands. Following this, Nicolle Verma distributed essential items to the attendants and also handed out fruits. She became emotional remembering her grandmother on her birth anniversary.

On this occasion, she also inaugurated the “Veena Verma Sevalaya” in memory of her grandmother, Veena Verma, to serve the attendants. She expressed, “I feel proud that my family is engaged in nation-building as well as social service. Today, in collaboration with Vijay Shree Foundation founder Foodman Vishal Singh Ji, I feel immensely proud to dedicate this shelter for the poor, helpless, and needy attendants of patients battling serious illnesses like cancer. I am honored to be associated with the Hunger-Free World Mission for humanity.”

Inspired by the continuous humanitarian service provided by Vijay Shree Foundation over the past 17 years, Nicolle Verma donated 10 lakh rupees to support the cause. The purpose of this donation is to ensure that services continue for the needy attendants of patients suffering from severe illnesses in hospitals, as facilitated by Foodman Vishal Singh.

It is noteworthy that Dr. Abhishek Verma’s family has a legacy of public and philanthropic service. They are helping millions to carry forward the values and service work of their parents. On the occasion of his mother’s birth anniversary, Dr. Abhishek Verma dedicated this state-of-the-art permanent shelter at Lucknow Medical College to serve the attendants of patients through the Vijay Shree Foundation.

Supporting Foodman Vishal Singh’s Hunger-Free World mission, Dr. Abhishek Verma assured that he would continually support keeping this flame of humanity alive. He also promised to assist in providing medicines to the helpless patients.

Continuing her grandmother’s legacy of service, Nicolle Verma personally served food to the needy patients and attendants. She said, “It is our good fortune to have received the joy of doing this noble work today through Foodman Vishal Singh. I have taken another step forward in carrying my family’s values and cooperation by joining hands with the Vijay Shree Foundation. My father taught me to serve and help the needy, and I feel happy when I bring a smile to someone’s face.”

On the birth anniversary of the late Veena Verma, the event organizer, Vijay Shree Foundation founder Foodman Vishal Singh, said, “We feel proud and happy that Dr. Abhishek Verma, a globally renowned business tycoon, has extended his support to uplift our country from the hunger index. Today, on his mother’s birth anniversary, he inaugurated a state-of-the-art permanent shelter at Lucknow Medical College, which will always be helpful for the needy attendants of patients. It is a pleasure for me and the organization to receive the affection of Mr. Verma.”

The event was attended by General Manager Verma Family Office Hemant Garg, Sonu Rajput, and the organization’s volunteers, including Sandeep Singh, Parmeshwar Ji, Prashant Rao Gautam, Balram Singh, Ramesh Chaudhary, Suman, Jeetu, Anil, Suraj, Vinay, Manish Bhadauria, Manas Mehrotra, Vivek, Apurv, Happy, and others.

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