NCLT gives Hotel Leela two months' time to complete deal with Brookfield; asks hospitality firm to comply with new Sebi directives

Hotel Leelaventure counsel Ashish Pyasi of Dhir and Dhir Associates tendered a copy of the new Sebi order and sought two months to comply with the same Mumbai Hotel Leelaventure Thursday got two months' time from NCLT to comply with the latest Sebi directives asking the hospitality company to make additional disclosures to shareholders to proceed with its proposed sale to Brookfield for Rs 3,9500000000. Hotel Leelaventure counsel Ashish Pyasi of Dhir and Dhir Associates tendered a copy of the new Sebi order and sought two months to comply with the same so that it can proceed with the transaction with Brookfield which has offered Rs 3,9500000000 for the four properties of the premium hotel chain. He said eight weeks time is required to comply with new postal ballot notice with additional disclosures as directed by the market regulator Sebi. Granting eight weeks time, the NCLT adjourned the matter to 27 September. The Brookfield deal will benefit all the creditors, including JM Financials, which owns 26% in the hotel, Pyasi said. Markets regulator Sebi had on Tuesday directed Leelaventure to make additional disclosures to its shareholders on its proposed sale to Brookfield. Last month, Sebi had asked the promoters to hold the sale process after minority shareholders ITC which owns 7.6% in the company and LIC which has 2% stake in the company moved the Sebi seeking Sebi not to allow the transaction alleging violations in relation to postal ballot notice, dated March 18, wherein the company had sought approvals regarding sale of assets to Brookfield. The watchdog also warned JM Financial ARC of adjudication proceedings against it for failing to comply with takeover norms. Sebi had also said the company should provide various additional disclosures in the postal ballot notice, including all relevant details of each of the sale transactions.