Coffee Day Group to clear Rs 4,970 crore debt

A file photo of the late Cafe Coffee Day(CCD) owner VG Siddhartha Photo: AFP

Coffee Day Enterprises Ltd (CDEL) assured that total debt of the Coffee Day Group stands at Rs 4,970 crore and all obligations to the lenders will be honoured, on Saturday. Of this amount, Rs 4,796 crore is said to be under secured loans and the rest Rs 174 crore under unsecured loans. The company has announced divestment of Global Village Tech Park, held by its subsidiary Tanglin Developments Ltd for an aggregate consideration of Rs 2,600 crore to 3,000 crores.

"On receipt of the consideration for the sale of Global Village after payment of required statutory payments, the debt position of Coffee Day Group will reduce around by Rs 2,400 crore," the company declared in a statement.

The debt position of Coffee Day Group (excluding Sical Logistics and Magnasoft Consulting) post repayment of debt out of proceeds from the sale of Global Village is expected to be around Rs 1,000 crore in the next 45 days, a PTI report mentioned. "The company expected to have a comfortable position to service the reduced debt obligations," the statement reads.

Sical has reportedly been working on the divestment of certain assets. The proceeds from the divestment are expected to significantly reduce the debt in Sical. "The company is confident that the ongoing divestments will significantly reduce the debt position of Coffee Day Group. The financial position and asset base of the Coffee Day Group will be comfortable to service the debt obligations of the entire group in full," it said in the statement.

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"We reiterate that the debt obligations of the Coffee Day Group will be honoured. We request all the lenders and creditors to give sufficient time to honour the commitments and to unlock the true potential value of the assets. We thank on behalf of 50,000 employees, for whom the Group has provided employment (direct and indirect)."

The founder and owner CDEL, V G Siddhartha's body were found on July 31 after massive search operations near Mangaluru in Karnataka. In a letter written by the enterprising coffee baron, he apologised for letting down people and cited pressure from private equity investors and harassment by tax authorities.

With inputs from PTI

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