MUMBAI, March 10 India's Hotel Leelaventure Ltd
, an operator of luxury hotels, is in talks with U.S.
private equity firm KKR & Co LP to receive a loan of up
to 20 billion rupees ($327.36 million), a source with direct
knowledge of the matter told Reuters.
Hotel Leelaventure could pledge part of its assets with KKR
for the financing and the private equity firm is seeking an
option that would allow it to swap the loan with shares, the
source added, without providing any further details.
The hotel operator said in an exchange filing it is in talks
with investors and lenders to raise funds and said its board
will meet on Wednesday to consider a proposal to evaluate
options on fulfilling its debt obligations. It did not provide
KKR declined to comment.
Shares in Hotel Leelaventure, which had debt of 46.59
billion rupees as of March 2013 according to its annual report,
rose as much as 6.3 percent on Monday.
The talks were earlier reported by The Economic Times
KKR plans to offer funding to struggling companies in India
where rising bad loans has constrained bank lending and low
demand has ruled out share sales for many small and mid-sized
firms, its co-founder Henry Kravis said last month during a
visit to the country.