Key Points of Coffee Day Enterprises Defaults in Q1 2023:
- CDEL has reported a total default of Rs 436.06 crore for the quarter ending on March 31, 2023.
- The company’s total financial indebtedness, including short-term and long-term debt, is Rs 461.06 crore.
- CDEL has defaulted on Rs 189.87 crore and an interest payment of Rs 5.78 crore from loans or revolving facilities such as cash credit from banks or financial institutions.
- The company’s total outstanding from unlisted debt securities is Rs 240.41 crore, of which Rs 200 crore is defaulted with an interest of Rs 40.41 crore.
- CDEL is pairing its debts through asset resolutions and has reduced it significantly from the time when the trouble started after the death of founder Chairman V G Siddhartha in July 2019.
- SEBI directed CDEL’s board to take necessary steps for recovery of the entire diverted amount from Mysore Amalgamated Coffee Estates Ltd, along with due interest. MACEL is an entity related to promoters.
- CDEL has appointed a legal firm to recover the amount after SEBI imposed a penalty of Rs 26 crore on the company for failing to prevent the diversion of Rs 3,535 crore from its subsidiaries.
Key Points of Coffee Day Enterprises Defaults in Q1 2023:
CDEL Reports Default of Rs 436.06 Crore, Focuses on Debt Pairing through Asset Resolutions
Coffee Day Enterprises Ltd (CDEL) has recently revealed a total default of Rs 436.06 crore for the quarter ending on March 31, 2023. As per an exchange filing, the company’s “total financial indebtedness of the listed entity including short term and long term debt” is Rs 461.06 crore. CDEL further disclosed that its total outstanding amount is Rs 220.65 crore from loans or revolving facilities such as cash credit from banks or financial institutions. Out of this, the company defaulted on Rs 189.87 crore along with an interest payment of Rs 5.78 crore.
CDEL’s total outstanding from unlisted debt securities such as NCDs and NCRPS is Rs 240.41 crore. Of this, the total amount of default as of date is Rs 200 crore along with interest of Rs 40.41 crore. However, the company is pairing its debts through asset resolutions and has successfully reduced it from the time when the trouble started after the death of founder Chairman V G Siddhartha in July 2019.
In March 2020, CDEL announced that it would repay Rs 1,644 crore to 13 lenders after finalizing a deal with Blackstone Group to sell its technology business park. However, earlier this year, the Securities and Exchange Board of India (SEBI) directed the board of CDEL to take necessary steps for recovery of the entire diverted amount from Mysore Amalgamated Coffee Estates Ltd, along with due interest. Notably, Mysore Amalgamated Coffee Estates Ltd (MACEL) is an entity related to promoters.
SEBI also imposed a penalty of Rs 26 crore on CDEL for failing to prevent the diversion of Rs 3,535 crore from the company’s subsidiaries. In response, CDEL informed earlier this week that it had appointed a legal firm to recover the amount. The company said, “As per SEBI order dated 24th January 2023 in the matter of Coffee Day Enterprises Limited, the Company in consultation with NSE, has appointed Crest Law firm to take effective steps for recovery of the outstanding dues from Mysore Amalgamated Coffee Estates Limited to seven subsidiaries of Coffee Day Enterprises Limited.”
About Coffee Day Enterprises:
Coffee Day Enterprises Ltd, an Indian company, is the owner and operator of coffee cafes. The company’s main focus is its cafe chain outlets, which operate under the brand names of Cafe Coffee Day (CCD), The Lounge, and The Square.
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