For the December quarter, Coffee Day Enterprises Ltd reported a total default of Rs 433.91 crore on interest and principal payments on loans from banks, financial institutions, and unlisted debt securities. In a regulatory update, Coffee Day Enterprises Ltd (CDEL), which is reducing its obligations through asset resolution, stated that "the delay in debt servicing is due to the liquidity crisis."
As of December 31, 2023, CDEL reported a default of Rs 183.36 crore on the payment of the principal amount on loans or revolving facilities such as cash credit from banks or financial institutions. Furthermore, it has failed to return Rs 5.78 crore in interest on the aforementioned.
As of December 31, the default amount for unlisted debt instruments such as Non-Convertible Debentures (NCDs) and Non-Convertible Redeemable Preference Shares (NCRPS) was Rs 200 crore, with an interest payment default of Rs 44.77 crore.
"As a result of the company's failure to repay interest and principal, the lenders have sent loan recall notices and initiated legal proceedings." "Due to loan recall notices, legal disputes, and pending one-time settlement with lenders, the company has not recognised interest from April 2021," it stated.
Following the death of Founder-Chairman V G Siddhartha in July 2019, CDEL reduced debts through asset resolution.
CDEL said in March 2020 that it had repaid Rs 1,644 crore to 13 lenders following the completion of a deal with Blackstone Group to sell its technology business park. The corporation is also seeking legal action to recoup Rs 3,535 crore that was allegedly siphoned off into Mysore Amalgamated Coffee Estates Ltd, a personal organization established by V G Siddhartha.
