Leelaventure downgraded

MUMBAI, Sept 24: The continuing uncertainty associated with its proposed equity placement has led the company to exclusively rely on borrowings to finance project expenditure and the investment in LHL.

HLVL has recently called off its proposed management services agreement with four seasons, the Canadian hotel chain, that was to manage the company8217;s upcoming hotels at Bangalore, Mumbai and Goa.

Moreover, the break-up with four seasons creates uncertainty over the performance of the recently upgraded and expanded Leela Beach at Goa at its expected level, ICRA said.

The company8217;s decision to review the Mumbai project and dispose of the land acquired last year has been viewed positively by ICRA given the planned capacity build-up in North Mumbai.