Coffee Day group's outstanding debt at Dh2.56 billion (Rs4,970 crores)
Debt position clarified in light of speculation after its founder-chairman's demise
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:
"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.
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"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.
