Coffee Day repays Rs1,644cr debt with proceeds from tech business park sale; stock slips ~5%

Post this payment, the consolidated debt of the company and its subsidiaries stands at Rs3,200cr as on March 27, 2020. This includes a debt of Rs1,400cr of its subsidiary, Sical Logistics, where disinvestment process is in progress. The company and subsidiaries have repaid around Rs4,000cr to the lenders since the beginning of this financial year.

Mar 30, 2020 09:03 IST India Infoline News Service

Coffee Day
Coffee Day Enterprises Limited (“the Company”) on August 14, 2019, had intimated the Exchanges regarding the disinvestment of Global Village Tech Park in its subsidiary, Tanglin Developments Ltd in favour of entities belonging to Blackstone Group and Salarpuria Sattva Group for a consideration of Rs2,700cr subject to closing conditions. The company said the transaction was subject to completion of Blackstone’s due diligence, documentation and receipt of requisite regulatory approvals.

Coffee Day Enterprises Ltd is currently trading at Rs23.10 down by Rs1.2 or 4.94% from its previous closing of Rs24.30 on the BSE.

In this regard, please note that the first Tranche of Rs2,000cr has been received by the Company. The balance amount is expected to be received after the receipt of few statutory approvals. Out of the money received in 1st tranche, the Company has paid-off its debts in full including principal and interest amounting to Rs1,644cr, to the lenders, despite difficult economic conditions.

Post this payment, the consolidated debt of the company and its subsidiaries stands at Rs3,200cr as on March 27, 2020. This includes a debt of Rs1,400cr of its subsidiary, Sical Logistics, where disinvestment process is in progress. The company and subsidiaries have repaid around Rs4,000cr to the lenders since the beginning of this financial year.

The company takes the opportunity to thank Blackstone and Salarpuria Sattva for their professional and transparent approach and quick turnaround time displayed under adverse market conditions. We would also like to thank our advisors, MAPE Advisory Group on the Investment Banking Side, Tatva Legal on the legal front and PWC on the Tax and structuring aspects. With the continuous support of the Stakeholders of the Company, the current management is working to ensure better liquidity and operational efficiency. The Company is confident of the future ahead despite various challenges.

Also, the company announced that due to complete nationwide lockdown declared by the Government of India, all its outlets are closed and offices are shutdown with the instruction to Work From Home.

Related Story