Coffee Day clarifies debt position, says total debt is Rs. 4,970 cr
- By NEWSCRAB Team
- Aug 19, 2019
- 46 views
Coffee Day Enterprises (CDE) has said that the total debt of the group is Rs 4,970 Cr rupees and has expressed confidence that once it concludes its divestments , the debts will be significantly reduced and the group will have no trouble paying the remaining debt. The company states stating that the company’s debt position is manageable and the focus has shifted to the amount of debt its founder late VG Siddhartha owed in his personal capacity to various un-named lenders. Soon after the passing away of Siddhartha, in a statement, the board had said while the authenticity of the letter was unverified, it was not clear whether the statements made in the letter pertain to the company or the personal holdings of its founder.
The board has also said that it had roped in Ernst & Young to investigate the contents of the letter. As the debt position of Coffee Day Group post repayment of debt out of the proceeds from the sale of global village tech park is expected to be around ₹1,000 crore from the current level of ₹3,472 crore, the board is expected to be in a better situation to sustain the operations of the Cafe Coffee Day chain.
On August 17, the board said that the total debt of the Coffee Day Group was at ₹4,970 crore. The group expects to receive between ₹2,600 crore and ₹3,000 crore from the divestment of global Village Tech Park held by its subsidiary, Tanglin Developments Ltd.
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Source : newscrab