Coffee Day Enterprises appoints IDFC Securities to advise on refinancing debt

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Published: September 7, 2019 4:29:15 PM

Coffee Day Enterprises on Saturday appointed IDFC Securities as an advisor to identify strategic options including divestment of its stake in Coffee Day Global Ltd and any other group firm.

While the median forecast showed the rupee will not retest Tuesday's low, the 12-month view was the most pessimistic in Reuters polls since December. It will also advise it on refinancing of existing debt, Coffee Day Enterprises said in a regulatory filing.

Coffee Day Enterprises on Saturday appointed IDFC Securities as an advisor to identify strategic options including divestment of its stake in Coffee Day Global Ltd and any other group firm. It will also advise it on refinancing of existing debt, Coffee Day Enterprises said in a regulatory filing. “The company in its meeting of the executive committee has appointed IDFC securities as the advisor of company and its subsidiaries for identifying the strategic options for Coffee Day Enterprises Ltd (CDEL) including divestment of its holding in Coffee Day Global Ltd and any other group company (other than SICAL Logistics Ltd),” according to a regulatory filing by Coffee Day Enterprises.

Cafe Coffee Day chain of coffee houses, operated by CDEL, has around 1,700 outlets across India. The company has been in trouble after its founder VG Siddhartha took his own life as debt strains began to emerge in his company. The group is trying to sell its stake in different assets since the death of VG Siddhartha. Following his unfortunate demise, Coffee Day Enterprises clarified about the firm’s debt position and said that all obligations will be honoured. In a statement to the exchanges, Cafe Coffee Day had said that in the aftermath of the unfortunate demise of VG Siddhartha, several speculations have been floating in the media with regard to the Debt Position of the Company. “The Company seeks to clarify the Debt Position and the expected reduction, post conclusion of the ongoing divestment transactions,” said Coffee Day Enterprises. Notably, the total debt of the Coffee Day Group stands at Rs 4,970 crore.

As a part of its ongoing debt reduction programme, the Company has already announced the divestment of Global Village Tech Park (Global Village) held by its subsidiary Tanglin Developments ltd which would fetch about Rs 2,600 – 3,000 crore.

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