Reports have it that there are serious debt issues being faced by Hotel Leela venture. An official was of the view that the firm has now decided to raise a voluptuous sum of 10 billion rupees for the purpose of shedding the debts. They have planned to do so by the share to sale to institutions, and their target for the same is December.

The entire process shall be inclusive of dissolving promoter stakes by about 14%, it was revealed by Vivek Nair the Vice President of the firm. "We have been advised because of the current situation to wait until September-October, until the market settles down. Then we can look at the QIP issue”, Nair said.

The firm owns and runs a chain of luxury hotels in Goa, New Delhi, Mumbai and Bangkok. The Indian Hotel business has been under recent fire and this due to the recent developments in the world economy.

It was revealed by Vivek Nair that the reason they were opting to sell the hotel in Kerala, was to reduce the debt crisis they were in.

He further revealed that the deal was a part of the scheme of debt reduction that the firm was following. He said this would bring down the debt levels by 0.7% at the end of the various deals.