The debt level of Coffee Day Enterprises has been reduced "significantly" to Rs 1,810 crore as on March 31, the company said in its latest annual report.
However, there have been certain defaults in repayments of principal and interest of the loans and certain lenders have exercised their rights including recalling the loans, Coffee Day Enterprises Ltd (CDEL) said.
"The debt levels have reduced significantly from Rs 7,214 crore as on March 31, 2019 to Rs 1,898 crore as at the end of March 31, 2021 and to Rs 1,810 crore as at the end on March 31, 2022," CDEL added. Following a circular from market regulator SEBI, CDEL on April 6, 2022, had made a disclosure of defaults on payments of interest and repayment of principal amount on loans from banks, financial institutions and unlisted debt securities for the March quarter.
"As per the disclosure, the company has defaulted in payment of interest and principal amounting to Rs 230.66 crore on loans/cash credits from banks/financial institutions and Rs 249.02 crore towards Non-convertible Debentures," it said. Moreover, CDEL also informed that the amount of Rs 3,430.67 crore due by Mysore Amalgamated Coffee Estates Limited (MACEL), to various subsidiaries and a joint venture of the company is yet to be recovered.
It has asked its subsidiaries and one joint venture firm to file suit against MACEL for recovery of the due amount following the recommendation of Justice H N Nagamohandas. After the death of founder Chairman V G Siddhartha in July 2019, CDEL was in trouble and paired debts through the resolution of assets.
In March 2020, CDEL had announced repaying Rs 1,644 crore to 13 lenders after concluding a deal with BlCoffee Day Enterprises, debt, Indiaackstone Group to sell its technology business park. The day-to-day operations of the company are being managed by the CEO and whole-time director and professional team with the help of the board members to ensure protection of interest of all stakeholders viz, shareholders, lenders, vendors, employees etc.
CDEL's subsidiary, Coffee Day Global Ltd, owns and operates the popular coffee chain CCD. It owns 495 cafés in 158 cities and 285 CCD Value Express kiosks. There are 38,810 vending machines that dispense coffee in corporate workplaces and hotels under the brand.In the pre-pandemic FY 2019-20, the total number of cafés stood at 1,192. The National Company Law Tribunal has already initiated a Corporate Insolvency Resolution Process against one of the subsidiaries, Sical Logistics Ltd, which runs port terminals and container freight stations, the annual report said.