Coffee Day Enterprises Ltd has reported a cumulative default of INR 433.91 crore on payments of interest and repayment of the principal amount on loans from banks, financial institutions, and unlisted debt securities for the December quarter.
Coffee Day Enterprises Ltd (CDEL), which is paring its debts through asset resolution, in a regulatory update said “the delay in debt servicing is due to liquidity crisis”.
CDEL reported a default of INR 183.36 crore on the payment of the principal amount on loans or revolving facilities like cash credit from banks or financial institutions as of December 31, 2023.
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Besides, it has also defaulted on the repayment of interest of INR 5.78 crore on the above.
For unlisted debt securities such as Non-Convertible Debentures (NCDs) and Non-Convertible Redeemable Preference Shares (NCRPS), the default amount was INR 200 crore as on December 31, along with a default in payment of interest of INR 44.77 crore.
“Due to default in repayment of interest and principal… 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 said.
After the death of Founder-Chairman V G Siddhartha in July 2019, CDEL reduced its debts by resolving assets.
Coffee Day Enterprises’ Repayment and Blackstone Group Deal:
In March 2020, CDEL announced the repayment of INR 1,644 crore to 13 lenders following the completion of a deal with Blackstone Group to sell its technology business park.
The company is also taking legal action to reclaim an amount over INR 3,535 crore, allegedly diverted from the company to Mysore Amalgamated Coffee Estates Ltd, a private firm promoted by V G Siddhartha.
