Coffee Day Group's Sical Logistics seeks one-time moratorium from lenders

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Sical Logistics Ltd, a part of the Coffee Day Group, asked its lenders to provide a one-time moratorium of three months from servicing their debts. The company said that it is planning to deleverage the company and its subsidiaries in line with the observations made by its holding company Coffee Day Enterprises Ltd, after the demise of its promoter V G Siddhartha.

Sical told the National Stock Exchange that it would utilise the available internal resources to augment the existing  cashflows to cater to the needs of business verticals and that it had asked lenders for a moratorium from August 2019 to October 2019 from servicing their debts.

According to a disclosure made by Coffee Day Enterprises, of the Rs 4,796 crore of secured loans, around Rs 1,488 crore belong to Sical Logistics Ltd (consolidated).

Sical has been working on the divestment of certain assets and the proceeds from divestment are expected to significantly reduce the company's debt.

While Tanglin Retail Reality Developments Pvt Ltd, a part of the Coffee Day Group, has a 50.19 per cent stake in the logistics and supply chain solutions company, Giri Vidyuth (India) Ltd holds a 4.99 per cent stake. The late V G Siddhartha, its promoter, personally held 0.68 per cent stake in the company. However, the entire 4,00,000 shares held by Siddhartha and almost 95.32 per cent of the stake of Tanglin Retail in Sical Logistics is pledged or otherwise encumbered according to a company filing. 

The Coffee Day Group acquired majority stake in Sical from the previous promoters, the M A Chidambaram Group, in September 2011. The company is an integrated logistics solution provider for bulk and containerised cargo in the country, and has interests in mining, port logistics, road and rail transport, container freight station, warehousing and shipping among others.

The net profit of the company, on a consolidated basis, for the quarter ended June 30, 2019, grew by 23.5 per cent to Rs 2.79 crore as compared to Rs 2.26 crore during the same quarter last year. The total income grew over 12 per cent to Rs 365.32 crore during the quarter, as against Rs 324.78 crore in the corresponding period of the last fiscal.