The Coffee Day group has declared an outstanding debt of Rs 4,970 crore. This includes Rs 4,796 crore in secured loans and Rs 174 crore unsecured loans.
The company decided to clarify its debt position to scotch media speculations and assure creditors, NDTV reported on Sunday.
“The clarification is in light of speculation in a section of the media on our debt position after the demise of our founder-chairman VG Siddhartha on July 31,” company secretary Sadananda Poojary wrote in a regulatory filing on the BSE on Saturday.
Notably, the Coffee Day founder-chairman had committed suicide last month allegedly over failed transactions, mounting debts and heat from the income tax department.
The Coffee Day group has also requested its lenders and creditors to give it time to honour the commitments and unlock the potential value of its assets.
On August 14, the company had decided to sell Global Village Tech Park of its subsidiary Tanglin Developments Ltd in Bengaluru for estimated Rs 2,600–3,000 crore.
“The group’s debt position will reduce to Rs 2,400 crore on receipt of the Global Village’s sale proceeds and settlement of statutory payments,” it said in the BSE filing.
The company is expected to be in a position to service the reduced debt obligations, it added.