Bengaluru-based coffeehouse chain operator Coffee Day Enterprises on Monday said its total default amounted to Rs 425.4 crore, as of march 31. That included payments towards interest and repayments of principal on loans from banks, financial institutions and unlisted debt securities as NCDs and NCRPS, according to a regulatory filing post-market hours.
The development comes at a time when Coffee Day Enterprises is paring its debts through asset resolution.
The delay in debt servicing is due to a liquidity crisis, said the company.
Coffee Day Enterprises said that certain lenders has sent ‘loan recall’ notices to it and initiated legal disputes over defaults in repayment of interest and principals.
In light of the loan recall notices, legal disputes and pending one-time settlements with the lenders, Coffee Day Enterprises said it has not recognised interest from April 2021.
Coffee Day Enterprises logged a default of Rs 174.8 crore on the payment of principal on loans or revolving facilities like cash credit from banks or financial institutions, as of March 31.
Here are the details of the liabilities, as shared by the company:
After the death of founder and then chairman VG Siddhartha in July 2019, Coffee Day Enterprises pared debts through the resolution of its assets.
In February, the National Company Law Appellate Tribunal (NCLAT), the appellate body for the decisions of insolvency court NCLT, set aside insolvency proceedings against Coffee Day Enterprises.
In August, the Bengaluru bench of the NCLT had admitted the plea filed by IDBI Trusteeship Services Ltd (IDBITSL) claiming a default of Rs 228.5 crore and appointed an interim resolution professional to take care of the operation of the debt-ridden company.
After this was challenged before the appellate body, the NCLAT in August stayed the insolvency proceedings initiated against Coffee Day Enterprises by NCLT over the plea of IDBITSL.
In March 2020, Coffee Day Enterprises announced that it was repaying Rs 1,644 crore to 13 lenders after concluding a deal with Blackstone Group to sell its technology business park.
With agency inputs
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