At the end of July, the total debt of the Coffee Day
group stood at Rs 4,970 crore. The group has already announced plans to sell its 90-acre Global Village Tech Park in Bengaluru. Coffee Day has said the sale will help reduce its debt by Rs 2,400 crore.
Besides Coffee Day, the group’s another listed firm, Sical Logistics, is looking to divest its assets to pare debt. Shares of Sical hit 5 per cent upper limit for a second straight trading session. Sical, too, has lost over 60 per cent in market value following Siddhartha’s demise.
“The company is confident that the ongoing divestments will significantly reduce the debt position of Coffee Day group. The financial position and asset base of the group will be comfortable to service the debt obligations of the entire group fully.
We reiterate that the debt obligations of the Coffee Day group will be honoured. We request all the lenders and creditors to give sufficient time to honour the commitments and to unlock the true potential value of the assets,” the company said in a press release.
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