Coffee Day Enterprises (CDEL) has reported a total financial default of Rs 436.06 crore for the quarter that ended on 31 March, 2023. The coffee cafe chain’s “total financial debt, including short term and long term debt” is Rs 461.06 crore, the company said in a stock exchange filing.
In terms of loans or revolving facilities like cash credit from banks or financial institutions, CDEL claims that the total overdue amount is Rs 220.65 crore. As per reports, CDEL has missed interest payments of Rs 5.78 crore and Rs 189.87 crore.
The company has a total outstanding worth Rs 240.41 crore in unlisted debt securities that includes NCDs and NCRPS. According to CDEL, the entire amount of this default as of today is Rs 200 crore, plus Rs 40.41 crore in interest. As the founder and chairman V G Siddhartha passed away in July 2019, the corporation has significantly scaled back its debt-resolution efforts through the use of assets.
After reaching an agreement with Blackstone Group to sell its technology business park, CDEL stated in March 2020 that it would be repaying Rs 1,644 crore to 13 lenders. The board of CDEL was instructed to take all necessary actions earlier this year by market regulator Securities and Exchange Board of India (Sebi) to collect the full sum that was misappropriated from Mysore Amalgamated Coffee Estates Ltd, as well as any applicable interest. An organisation connected to the promoters is called Mysore Amalgamated Coffee Estates Limited (MACEL).
For failing to prevent the theft of Rs 3,535 crore from the company’s subsidiaries, SEBI additionally fined CDEL Rs 26 crore. CDEL announced earlier this week that it has hired a legal team to collect the money.
In accordance with a SEBI ruling dated January 24, 2023 regarding Coffee Day Enterprises Ltd, the company said that it has hired Crest Law Firm to take prompt action to recover unpaid debts owed to seven subsidiaries of CDEL by Mysore Amalgamated Coffee Estates Limited.