New Delhi: Coffee Day Enterprises Ltd has disclosed a complete default of Rs 433.91 crore in interest and principal payments on loans from banks, financial institutions, and unlisted debt securities like NCDs and NCRPS for the quarter ending on June 30, 2024 in New Delhi.
Coffee Day Enterprises Ltd (CDEL) is addressing its debts by resolving assets, and stated in a regulatory update that the reason for the delay in debt servicing is a liquidity crisis. The default amount remains the same as the company has consistently reported a similar amount in previous quarters. This is due to the fact that the company is not including interest starting from 2021.
Because the company failed to repay interest and principal to the lenders, the lenders have issued 'loan recall' notices and started legal disputes. The company stated that it has not acknowledged interest from April 2021 due to loan recall notices, legal disputes, and an ongoing one-time settlement with lenders.
As of June 30, 2024, CDEL has announced a default of Rs 183.36 crore in payment of the principal amount on loans or revolving facilities such as cash credit from banks or financial institutions.Additionally, CDEL has also failed to make a payment of Rs 5.78 crore in interest.
As of June 30, 2024, the default amount for unlisted debt securities like NCDs and NCRPS is Rs 200 crore, with an additional default of Rs 44.77 crore in interest payments. Following the passing of founder Chairman V G Siddhartha in July 2019, CDEL faced challenges and settled debts by selling off assets.
In March 2020, CDEL stated it would return Rs 1,644 crore to 13 creditors following an agreement with Blackstone.
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