Jobaaj Stories
The operator of Cafe Coffee Day, Coffee Day Enterprises has reported a massive default of Rs 436.06 crores in the quarter of January-March 2023.
For the unversed, Coffee Day Enterprises (CDEL) is the parent company that operates the chain outlets Cafe Coffee Day, The Lounge and The Square. The company is also involved in the retail sales of the coffee it processes. CDEL also exports such coffee to Japan, European and Middle Eastern countries.
The company has been in financial trouble ever since the company's founder VG Siddharth in 2019. The company had announced the sale of its business park to Blackstone for a consideration of around Rs 1,644 crores to pay 13 lenders.
Moreover, the company has been accused of mismanagement as funds worth Rs 3,535 crores were transferred to its subsidiary Mysore Amalgamated Coffee Estates Limited.
The company was charged a hefty fine of Rs 26 crores and ordered to recover said amount alongside the interest by SEBI.
According to the company, its outstanding debt by way of loans and cash credit facilities provided by banks is around Rs 220.65 crores. Adding to that, it has an outstanding debt through debt instruments worth Rs 240.41 crores. This brings the cumulative total of CDEL's debt to Rs 461.06 crores.
The coffee company has defaulted Rs 195.65 crores of bank loans while the entirety of its debt through debt instruments defaults. This brings the company's total debt default up to Rs 436.06 crores.
The company is currently working to reduce its debt liabilities through asset resolutions and has been able to successfully tone it down.
The stock of CDEL closed at Rs 33.45 per share on Thursday.
- Aman Agarwal
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