Weeks after Cafe Coffee Day (CCD) founder-owner V.G. Siddhartha’s demise, the Coffee Day Enterprises Ltd (CDEL) on Saturday released a statement acknowledging the company’s current financial status.
All obligations to the lenders will be honoured, it added.
Presently, the Coffee Day Group’s total debt stands at Rs 4,970 crore – Rs 4,796 cr (secured loans) and Rs 174 cr (unsecured loans).
The enfranchisement of Global Village Tech Park (GVT) is already underway, reports said. An aggregate of Rs 2,600 crore to 3,000 crore is being considered for the asset.
Tanglin Developments Ltd, a subsidiary of CDEL, holds GVT Park.
After the divestment of Global Village the Group expects to reduce the debt position by Rs 2,400 crore from the total.
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 to expected to reduce the debt position.
We reiterate that the debt obligations of the Coffee Day Group will be honoured.
The statement requested the lenders and creditors to provide the group with ambient time period to honour the Group’s commitment towards them. This is period will be used to gather potential value of its assets, the statement read.
The request was made on behalf of over 50,000 employees working under various ventures of the Group.
Former owner of the CCD Group, Siddhartha went missing on July 29. His body was found on two days later from Netravati river near Mangaluru.
The coffee baron had written a letter addressed to the employees before his death. The letter contained an apology for letting down his people and reasons citing the mounting financial pressure that led him to such a drastic step.
(With inputs from ANI)