Miscellaneous

Coffee Day Group to clear all due debt of Rs 4,970 crore

ANI | August 17, 2019 02:39 PM
CDEL asked lenders and creditors to give sufficient time to honour the commitments

Bengaluru (Karnataka) [India], Aug 17 (ANI): Coffee Day Enterprises Ltd (CDEL) said on Saturday that total debt of the Coffee Day Group stands at Rs 4,970 crore and all obligations to the lenders will be honoured.

Of this amount, Rs 4,796 crore is under secured loans and the rest Rs 174 crore under unsecured loans. The company has already 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 crore.

"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," it said 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. "The company expected to have a comfortable position to service the reduced debt obligations," it said.

Sical has been working on 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.

"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)."

CDEL founder and owner V G Siddhartha's body was found on July 31 after 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. (ANI)

Have something to say? Post your comment
Must Read
Punjab CM asks DCs to prioritise core sectors of education, health, water & power for development
Punjab CM asks DCs to prioritise core sectors of education, health, water & power for development
A theft in the commission agents’ shop in Jaitu, town, residents allege police inaction, claim the frequent thefts are happening
A theft in the commission agents’ shop in Jaitu, town, residents allege police inaction, claim the frequent thefts are happening
Muktsar police hold an awareness seminar against drugs in village Kotli Ablu, 18 cases of having the property of drug peddlers attached forwarded to Delhi
Muktsar police hold an awareness seminar against drugs in village Kotli Ablu, 18 cases of having the property of drug peddlers attached forwarded to Delhi
Babu Singh Panjawa isn’t SC commission member, people shouldn’t be misled: Chairperson Tejinder Kaur
Babu Singh Panjawa isn’t SC commission member, people shouldn’t be misled: Chairperson Tejinder Kaur
Commissionerate Police issue various ban orders
Commissionerate Police issue various ban orders
Punjab Lokpal endorses Advocate Sandhu’s Book ‘Singapore-Indian Legal System-A Comparative Legal Study’
Punjab Lokpal endorses Advocate Sandhu’s Book ‘Singapore-Indian Legal System-A Comparative Legal Study’
From 'Son of Anarchy' to 'Son of Delhi': How AAP Overhauled Brand Kejriwal to Win Delhi for 3rd Time
From 'Son of Anarchy' to 'Son of Delhi': How AAP Overhauled Brand Kejriwal to Win Delhi for 3rd Time
District level approval committee clears two investment proposals worth Rs 4.83 crores for Jalandhar under business first portal
District level approval committee clears two investment proposals worth Rs 4.83 crores for Jalandhar under business first portal
DC dedicates two new Fard Kendras constructed at a cost of Rs 8 lakh to people
DC dedicates two new Fard Kendras constructed at a cost of Rs 8 lakh to people
Punjab CM orders ban on movie 'Shooter' based on life of gangster Sukha Kahlwan
Punjab CM orders ban on movie 'Shooter' based on life of gangster Sukha Kahlwan
Mega block between Mumbai Central and Churchgate till 6.15 am today
Mega block between Mumbai Central and Churchgate till 6.15 am today
Punjab DGP sets up all-women SIT to investigate Mohali gang-rape case
Punjab DGP sets up all-women SIT to investigate Mohali gang-rape case