Coffee Day Enterprises Ltd. reported a total default of Rs 433.91 crore in interest payments and principal repayment on loans from banks, financial institutions, and unlisted debt securities such as non-convertible debentures and non-convertible redeemable preference shares for the quarter-ended June.
The company attributed this delay in debt servicing to a liquidity crisis, maintaining that the default amount remains unchanged from previous quarters due to the exclusion of interest since 2021. As a consequence of the defaults in repayment, lenders have issued "loan recall" notices and initiated legal proceedings against the company.
Coffee Day also disclosed a default of Rs 183.36 crore on principal repayments for loans and revolving facilities like cash credit from banks or financial institutions as of June 30. Additionally, the company acknowledged a default in interest payments amounting to Rs 5.78 crore on these obligations.
While for unlisted debt securities such as NCDs and NCRPS, the outstanding amount of default is Rs 200 crore as of June 30, 2024, along with a default in payment of interest of Rs 44.77 crore on the same.
After the death of founder Chairman VG Siddhartha in July 2019, CDEL was in trouble and pared debts through the resolution of assets.
In March 2020, CDEL announced repaying Rs 1,644 crore to 13 lenders after concluding a deal with Blackstone Group to sell its technology business park.
It's also pursuing a legal course to recover over Rs 3,535 crore allegedly siphoned out of the company into Mysore Amalgamated Coffee Estates Ltd., a personal firm promoted by Siddhartha.
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