By Aditya Raghunath
Investing.com -- The pandemic might have finally been too much for Coffee Day Enterprises Ltd (NS: CODE ), owners of the coffee chain Café Coffee Day after it defaulted on loans in the March quarter of FY21.
A report by Business Standard says that lenders that the company owes money to are “considering sending the company to the National Company Law Tribunal (NCLT) for debt resolution after the firm announced that it had defaulted on its loans in the March 2021 quarter.”
Data says that Coffee Day Enterprises owes its lenders Rs 280 crore. The company owes a total of Rs 518 crore and it defaulted on payments worth Rs 263 crore. A report in The Economic Time said that the company owes money to AXIS Bank Ltd (NS: AXBK ), SSG Singapore and Aditya Birla Finance. “These had been debts that had remained on the company's book since the time of founder VG Siddhartha's death [in July 2019],” the report said.
However, not everything is grim for the company. Coffee Day Enterprises is waiting for the final tranche of Rs 700 crore which is pending after its sale of Global Technology Village in Bengaluru to Blackstone (NYSE: BX ) Group. Blackstone bought it from the company for a total consideration of Rs 2,700 crore and has made payments of Rs 2,000 crore.
The ET report said that the company will first clear the debt of Tanglin Development that owned Global Technology Village, and then distribute the amounts to the lenders, once it receives the Rs 700 crore.
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