According to Reuters report, Hotel Leelaventure Ltd, which operates five-star hotels, plans to cut debt by launching Rs 375 crore share sale to institutions after July 2010. Vivek Nair, Vice Chairman and Managing Director, Hotel Leelaventure Limited said, "We are planning to raise an equal amount of funds by issuing foreign currency convertible bonds (FCCBs) in the next two months, which will be used to add capacity." The Board on Monday approved raising up to Rs 750 crore via qualified institutional placement (QIP) or FCCBs.
Nair said, "We would like to bring down the existing debt in the books." The total debt, including FCCBs stands at about Rs 2,500 crore. He said, "The QIP will help bring that down, plus our internal accruals will also go towards debt reduction," adding that the company plans to reduce almost Rs 700-900 crore of debt this year.
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