Bengaluru: The Coffee Day group on Saturday said its total outstanding debt was Rs 4,970 crores (about Dh2.56 billion, or $698 million), including Rs 4,796 crores secured loans and Rs 174 crores in unsecured loans.
"The management has decided to clarify its debt position, the expected reduction and post conclusion of the ongoing divestment transactions," said the city-based company in a regulatory filing on the BSE.
The total debt was broken down into the following:
- Coffee Day Enterprises Ltd was valued at Rs 480 crores (Dh247 million)
- Coffee Day Global Ltd is at Rs 1,097 crores (Dh566 million)
- Way 2 Wealth Ltd at Rs 121 crores (Dh62 million)
- Tanglin Developments Ltd at Rs 1,622 crores (Dh837 million)
- Tanglin Retail Reality Developments Ltd Rs 15 crores (Dh7.74 million)
- Coffee Day Hotels and Resorts Ltd Rs 137 crores (Dh70.7 million)
- Sical Logistics Ltd Rs 1,488 crore (Dh768.3 million)
- Magnasoft Consulting India Ltd Rs 10 crore (Dh5.16 million)
"The clarification is in light of speculation in a section of the media on our debt position after the demise of our founder-chairman V.G. Siddhartha on July 31," Company Secretary Sadananda Poojary in the filing.
The company's board on August 14 decided to sell Global Village Tech Park of its subsidiary Tanglin Developments Ltd in Bengaluru to the US-based private equity firm Blackstone for Rs 2,600-3,000 crore over the next 30-45 days.
"The group's debt position will reduce to Rs 2,400 crore on receipt of the Global Village's sale proceeds from Blackstone and settlement of statutory payments," it said in the filing.
The company is expected to be in a position to service the reduced debt obligations.
"Sical has been working on divestment of certain assets, whose proceeds will reduce its debt," said Poojary.
The company has requested the lenders and creditors to give it time to honour the commitments and unlock the potential value of its assets.
The group has provided direct and indirect employment to about 50,000 people.