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Last Updated : Aug 01, 2019 11:54 AM IST | Source: Moneycontrol.com

VG Siddhartha had personal debt of more than Rs 1,000 crore: Report

The debt was raised through three entities - Devadarshini Info Technologies, Gonibedu Coffee and Coffee Day Consolidations, according to corporate affairs ministry documents

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Cafe Coffee Day founder VG Siddhartha, who passed away on July 29, had a personal debt of over Rs 1,000 crore, according to a report by The Economic Times.

The debt was raised through three entities - Devadarshini Info Technologies, Gonibedu Coffee and Coffee Day Consolidations, according to corporate affairs ministry documents.

Moneycontrol could not independently verify the story.

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In September 2014, Devadarshini raised Rs 471 crore through optionally convertible debentures (OCDs) from Standard Chartered Private Equity (Mauritius), Credit Opportunities Fund and Asia Credit Opportunities (Mauritius).

The company also secured Rs 300 crore from SSG Asia in November 2018 and partially repaid these OCDs, sources told The Economic Times.

Other debt facilities mentioned include Rs 450-crore exposure in Gonibedu Coffee, the report added. The documents did not specify whether the debts had been repaid.

Tanglin Retail Realty, Siddhartha’s real estate firm, issued 30,000 secured, rupee-denominated non-convertible debentures (NCDs) — each valued at Rs 10 lakh — to Standard Chartered Bank (Singapore) on March 25.

Standard Chartered’s exposure did notextend to the full amount, the report added.

Standard Chartered declined to comment when approached by The Economic Times. SSG Capital partner Shyam Maheshwari did not respond to queries. Gonibedu Coffee, Tanglin, Devadarshini Info and Coffee Day Global did not respond to requests for comment either.

The consolidated borrowings of Coffee Day Enterprises stood at Rs 6,547.38 crore as of on March 31.

Siddhartha wrote a letter dated July 27 to the board and employees, saying he had “failed as an entrepreneur”. The CCD founder spoke of pressure from private equity partners and harassment from a previous DG income tax.

“I fought for a long time but today I gave up,” he added.

The board appointed SV Ranganath as interim Chairman on July 31, following the news of Siddhartha’s death.

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First Published on Aug 1, 2019 11:24 am
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