Anupriya Bishnoi
Hotel Leela Venture said its board has approved the proposed change in name of the company to ‘HLV Ltd’ or some other suitable name, if it is not available. As part of the Brookfield transaction, the word “Leela” would not be a part of the company’s name, Hotel Leela Venture said in a filing to the BSE. The board has also approved the resignations of Rajiv Kaul as President and Rajan Shah, its Chief Financial Officer as they wanted to move to Brookfield.
The Company will continue to own and operate the hotel in Mumbai, under the Leela Brand licensed to it by Brookfield. The Company also continues to own the land in Hyderabad and its share of apartments under the joint development project of residential apartments with Prestige Developers in Bangalore, adjoining The Leela Palace Hotel. The total consideration of Rs. 3950 crores was received from Brookfield on 16th October 2019 and the entire consideration, net of transaction-related costs of Rs. 70 crores were used to repay the banks and financial institutions who were lenders to the Company, in full and final settlement, as One-time settlement. The lenders have issued release letters to the Company whereby they have confirmed that there are no further dues payable by the Company and have thereby released all the security interest created in that regard including security on assets which are not part of the sale of Undertakings to Brookfield.
