By the end of July 2019, the group’s aggregate debt stood at Rs 4,970 crore, of which Tanglin Developments’ liabilities were at Rs 1,622 crore. CDEL’s flagship coffee retailing arm Coffee Day Global’s total debt was Rs 1,097 crore. Sources said around Rs 2,000 crore of proceeds from the Global Village Tech deal would be utilised to reduce debt. As part of its deleveraging initiatives, CDEL has divested its brokerage business ‘Way2Wealth Securities’ to Shriram Ownership Trust in January.
After the demise of CDEL's founder chairman V G Siddhartha last year, the conglomerate is facing liquidity crunch owing to higher interest outgo towards servicing debt. This deal of Global Village Tech Park is critical for the firm to reduce its debt and ease working capital situation.
Currently, trading in CDEL's shares remains suspended as the company was not able to submit its audited financial statements in time.
The company has sought more time from regulators for submission of audited results citing to non-completion of internal investigations. In August last year, the company has assigned Ashok Kumar Malhotra, retired DIG of the Central Bureau of Investigation (CBI) to investigate into the purported letter written by V G Siddhartha. He was also assigned to scrutinise the books of accounts of the company with the help of an accounting firm.