Coffee Day Global Approves One Time Settlement of ₹40 Crore Debt
Coffee Day Global Limited and RARE ARC have approved a One Time Settlement (OTS) for ₹40 crore to reduce debt. The payment will be made in two tranches: ₹25 crore immediately, funded by land sale, and ₹15 crore within one year. This is subject to final approvals and documentation.
The settlement of a significant debt amount is material for the company's financial restructuring, impacting its balance sheet and operational flexibility.
The One Time Settlement will reduce the company's debt liability, which is a positive development for its financial health.
Coffee Day Global Limited, a material subsidiary of Coffee Day Enterprises Limited, has received in-principle approval for a One Time Settlement (OTS) with RARE Asset Reconstruction Company Limited (RARE ARC). This settlement pertains to outstanding loans previously assigned by Karnataka Bank Limited, RBL Bank Ltd, and Kotak Mahindra Bank Limited.
The primary reason for opting for the OTS is to reduce the company's debt liability. The total settlement amount is ₹40,00,00,000 (INR 40 Crore), which will be paid in two tranches. The first tranche of ₹25,00,00,000 (INR 25 Crore) is payable immediately upon acceptance of the OTS, proposed to be funded through the sale of mortgaged land. The second tranche of ₹15,00,00,000 (INR 15 Crore) is to be paid within one year from the acceptance of the OTS.
This settlement is subject to final approval and the completion of documentation.
What to do with a filing like this
Coffee Day Enterprises Limited filed this with the NSE as a statutory disclosure, categorised under one-time settlement with banks. It is a primary document, not a recommendation, and the desk marks it medium impact: worth reading, rarely worth acting on by itself.
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See the model portfoliosA plain-language summary of a public exchange filing by Coffee Day Enterprises Limited. Read the original for the full detail.