Coffee Day Enterprises’ total outstanding from unlisted debt securities, such as NCDs and NCRPS, is Rs 244.77 crore.
Coffee Day Enterprises’ total financial indebtedness of listed entity, including short-term and long-term debt, is Rs 433.91 crore in the July-September 2023 quarter
Coffee Day Enterprises Ltd (CDEL) on Thursday reported a total default on payments of loans’ principal and interest amount of Rs 433.91 crore for the September 2023 quarter. This is lower than the June quarter when CDEL had reported a total default of Rs 440.25 crore.
Its “total financial indebtedness of listed entity, including short term and long term debt”, is Rs 433.91 crore in the July-September quarter, the company said in a disclosure to bourses on Thursday. According to CDEL, its total outstanding amount is Rs 189.14 crore from loans or revolving facilities like cash credit from banks or financial institutions.
Of this, CDEL defaulted on Rs 183.36 crore principal amount and an interest payment of Rs 5.78 crore as of date. The company’s total outstanding from unlisted debt securities, such as NCDs and NCRPS, is Rs 244.77 crore. Of this, the total amount of default as of date is Rs 200 crore along with an interest of Rs 44.77 crore, the company noted.
“Due to default in repayment of interest and principal to the lenders, the lenders have sent ‘loan recall’ notices to the company as well as initiated legal disputes. In view of the loan recall notices, legal disputes and pending one-time settlement with the lenders, the company has not recognised interest from April 2021,” it added. Earlier in August, the NCLAT had stayed insolvency proceedings against its subsidiary Coffee Day Global Ltd (CDGL), which owns and operates the popular Cafe Coffee Day chain.
On September 13, 2023, CDGL reached a settlement with its financial creditor IndusInd Bank, following which the NCLAT has set aside an insolvency process against it. CDEL is trying to pair its debts through asset resolutions and has significantly scaled it down from the time when the trouble started after the death of founder Chairman V G Siddhartha in July 2019.
In March 2020, it announced repaying Rs 1,644 crore to 13 lenders after concluding a deal with Blackstone Group to sell its technology business park. Earlier this year, capital markets regulator SEBI had also levied a penalty of Rs 26 crore on CDEL for failing to stop the diversion of Rs 3,535 crore from the company’s subsidiaries.
The company is trying to recover the amount legally from Mysore Amalgamated Coffee Estates Ltd (MACEL).
(This story has not been edited by News18 staff and is published from a syndicated news agency feed – PTI)
