Coffee Day Defaults Rise to Rs 434 Cr in Q4 | Business News
By Rediff Money Desk, NEWDELHI Jan 04, 2024 16:46
Coffee Day Enterprises Ltd (CDEL) has reported a total default of Rs 433.91 crore on loan payments for the December quarter, citing liquidity crisis. The company is paring its debts through asset resolution and pursuing legal action to recover funds.
New Delhi, Jan 4 (PTI) Coffee Day Enterprises Ltd has reported a total default of Rs 433.91 crore on payments of interest and repayment of 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 Rs 183.36 crore on the payment of the principal amount on loans or revolving facilities like cash credit from banks or financial institutions as on December 31, 2023.
Besides, it has also defaulted on the repayment of interest of Rs 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 Rs 200 crore as on December 31, along with a default in payment of interest of Rs 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 pared debts through resolution of assets.
In March 2020, CDEL said it repaid Rs 1,644 crore to 13 lenders after concluding a deal with Blackstone Group to sell its technology business park.
The company is also pursuing a legal course to recover over Rs 3,535 crore allegedly siphoned off the company into Mysore Amalgamated Coffee Estates Ltd -- a personal firm promoted by V G Siddhartha.
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 Rs 183.36 crore on the payment of the principal amount on loans or revolving facilities like cash credit from banks or financial institutions as on December 31, 2023.
Besides, it has also defaulted on the repayment of interest of Rs 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 Rs 200 crore as on December 31, along with a default in payment of interest of Rs 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 pared debts through resolution of assets.
In March 2020, CDEL said it repaid Rs 1,644 crore to 13 lenders after concluding a deal with Blackstone Group to sell its technology business park.
The company is also pursuing a legal course to recover over Rs 3,535 crore allegedly siphoned off the company into Mysore Amalgamated Coffee Estates Ltd -- a personal firm promoted by V G Siddhartha.
Read More On:
DISCLAIMER - This article is from a syndicated feed. The original source is responsible for accuracy, views & content ownership. Views expressed may not reflect those of rediff.com India Limited.
You May Like To Read
TODAY'S MOST TRADED COMPANIES
- Company Name
- Price
- Volume
- Srestha Finvest
- 0.72 (+ 4.35)
- 44627848
- AvanceTechnologies
- 0.94 ( -4.08)
- 14881715
- Sagility India
- 31.27 (+ 4.23)
- 11433714
- ARC Finance
- 2.90 (+ 1.40)
- 9419535
- Vodafone Idea L
- 7.83 ( 0.00)
- 9161059
MORE NEWS
Cox & Kings Travel Brand Returns Under...
Wilson & Hughes, a Singapore-based firm, brings back the travel brand Cox...
Sagility India Shares Debut 3.53% Higher - IPO,...
Sagility India Ltd., a healthcare technology services provider, listed on the BSE and...
Sensex, Nifty Rise in Early Trade: US Markets,...
Indian equity benchmarks Sensex and Nifty climbed in early trade on Tuesday, driven by...