BENGALURU : Coffee Day Enterprises Ltd said on Wednesday that the company and its subsidiary, Tanglin Developments Ltd, were in the process of obtaining a No objection certificate (NOC) from lenders to sell Bengaluru-based Global Village Tech Park to New York-based investment giant Blackstone.'
Coffee Day also denied reports that suggested Yes Bank, which is the single largest lender to the company, has stalled the Tech Park deal valued at Rs 27,00 crore.
Terming the report of Yes Bank seeking an assurance from Coffee Day on the repayment of loans prior to approval of the Tech Park sale as “bruits”, the firm informed the BSE in a filing that the company and Tanglin Developments Limited, its subsidiary, were in the process of obtaining required NOCs from lenders for the completion of the deal. Coffee Day’s subsidiaries Tanglin Developments Ltd and Sical Logistics owe Yes Bank nearly Rs 150 crore.
The debt-ridden coffee chain has been trying to sell its assets to settle debts of nearly Rs 5,000 crore after its billionaire founder and promoter V.G Siddhartha committed suicide in July. In September, Coffee Day announced that it had signed a non-binding letter of intent to sell its nine-acre Tech Park, owned by Tanglin Development Ltd, to Blackstone in a deal valued at Rs 27,00-crore to Rs 30,00 crore. Private equity giant Blackstone had emerged as a front runner to buy the real estate property.
The money raised would help pay off the debts, of which Rs 4,796 crore is secured loans and another Rs 174 crore is unsecured, the company said earlier in a statement. Sources said that Coffee Day is also looking for a potential buyer for Sical Logistics, which runs port terminals and container freight stations, through which the company is expected to raise another Rs 1,500 crore. Coffee Day Enterprises shares on Wednesday settled at Rs 41.70, down 0.24 per cent from the previous close.