Bengaluru IT park sale to reduce debt burden to Rs 1,000 cr: Coffee Day

Global Village Tech Park | PHOTO: SAGGERE RADHAKRISHA

Cafe chain operator Coffee Day Enterprises on Saturday said its total debt is expected to reduce to around Rs 1,000 crore after adjusting the proceeds from sale of its Global Village Tech Park in Bengaluru to Blackstone.

"The company has already announced the divestment of Global Village Tech Park held by its subsidiary Tanglin Developments Ltd for an aggregate consideration of Rs 2,600-3,000 crore. On receipt of the consideration for the sale of Global Village after payment of required Statutory payments, the debt position of Coffee Day Group will reduce around by Rs 2,400 crore," Coffee Day Enterprises said in a regulatory filing.

The debt position of Coffee Day Group post repayment of debt out of proceeds from sale of Global Village is expected to be around Rs 1,000 crore in the next 45 days, it added.

As per the filing, total debt of Coffee Day Enterprises as on July 31, 2019 was Rs 3,472 crore. The company said its arm Sical Logistics has also been working on divestment of certain assets.

 

"The proceeds from the divestment is expected to significantly reduce the debt in Sical," Coffee Day Enterprises added.

Total debt of Sical Logistics is Rs 1,488 crore, it added.

The company said it is confident that the ongoing divestments will significantly reduce the debt position of Coffee Day Group.

"The financial position and asset base of the Coffee Day Group will be comfortable to service the debt obligations of the entire group in full. 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," it said.

Last month, Coffee Day Enterprises founder V G Siddhartha allegedly committed suicide. In a letter purportedly written by him, Siddhartha mentioned "serious liquidity crunch" and "tremendous pressure" from lenders and an unnamed private equity investor, among other issues.



Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel