JM Financial Asset Reconstruction Company Ltd has filed an insolvency petition against Hotel Leela Venture Ltd in the National Company Law Tribunal’s Mumbai bench, according to the hotel chain.

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

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

Shares of Hotel Leela Venture Ltd plummeted more than 6% from their previous close after the company made the announcement to the bourse.

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