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After VG Siddhartha’s death, CCD clarifies on firm’s debt; says all obligations will be honoured

After VG Siddhartha’s death, CCD clarifies on firm’s debt; says all obligations will be honoured


Mangalore Today News Network

Bengaluru, Aug 17, 2019 : Following the unfortunate demise of founder VG Siddhartha, Coffee Day Enterprises clarified about the firm’s debt position and said that all obligations will be honoured. In a statement to the exchanges, Cafe Coffee Day said that in the aftermath of the unfortunate demise of VG Siddhartha, several speculations have been floating in the media with regard to the Debt Position of the Company. "The Company seeks to clarify the Debt Position and the expectedreduction, post conclusion of the ongoing divestment transactions," said Coffee Day Enterprises. Notably, the total debt of the Coffee Day Group stands at Rs 4,970 crore, Yahoo reported.

 

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As a part of its ongoing debt reduction programme, the Company has already announced the divestment of Global Village Tech Park (Global Village) held by its subsidiary Tanglin Developments ltd which would fetch about Rs 2,600 - 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," noted the firm. Notably, out of the total debt of Rs 4,970 crore, Rs 1,498 crore worth of debt is from  Sical Logistics and Magnasoft Consulting.

Therefore, the Debt Position of Coffee Day Group (excluding Sical and Magnasoft) post repayment of Debt out of

proceeds from sale of Global Village is expected to be around Rs 1,000 crore in the next 45 days. "Sical has been working on divestment of certain assets. The proceeds from the divestment is expected to significantly reduce the debt in Sical," said Coffee Day Enterprises in its statement.

Coffee Day said that the debt obligations of the Group will be honored. "We request all the lenders and creditors to give sufficient time to honor 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," noted the firm.

Earlier this week, the group said it is set to sell its Global Village Tech Park to global private equity player Blackstone. The firm indicated it has entered into a non-binding letter of intent with the investor. The divestment is a step towards develeraging the group’s debt.


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