- The company had so much debt till March this year, till March last year it was Rs 2457 crore.
- Founder VG Siddharth had mentioned the pressure of the borrowers in a letter, his body was found in the river on Wednesday.
- Siddharth shares of 4 other firms were also pledged to raise funds, to pay off some debt in July.
new Delhi. Coffee Day Enterprises had a debt of Rs 5,251 crore as of the end of March. 2,457.3 crores a year ago. The promoters (VG Siddharth and family members) have pledged 75% of the shares. The liabilities of VG Siddharth’s unlisted companies may also be comparable to Coffee Day. The news agency gave this information on Thursday, based on the filings given by the company to the Ministry of Stock Exchange and Corporate Affairs.
Siddharth had 32.7% shares of Coffee Day till the end of June
According to the ministry filing, Siddharth was trying to raise funds by pledging the shares of Coffee Day Enterprises and four unlisted companies. So that, personal and business loans can be repaid. Some of the debt had to be repaid in July as well. Siddharth also took loans from several banks and financial institutions for non-coffee business.
As of the end of June, Siddharth had 32.7% shares of Coffee Day Enterprises (CDEL). Wife Malavika had 4.05% shares. Siddharth had around 17% stake in 4 other companies Devdarshini Info Technologies, Coffee Day Consolidations, Gonibedu Coffee Estate and Siwan Securities.
Siddharth’s wife Malavika can become the chairperson of Coffee Day
Coffee Day Enterprises has not announced June quarter results. The company will have a board meeting on 8 August. The results can then be announced. According to media reports, after the death of VG Siddharth, now wife Malavika can take charge of the company. They are already on the company’s board. Malavika studied engineering at Bangalore University. She is the daughter of former Karnataka Chief Minister and former External Affairs Minister of the country SM Krishna. SV Ranganath is currently the interim chairman of Coffee Day.
Business failure should not be viewed with bad eyes: Finance Minister
Finance Minister Nirmala Sitharaman said so on Thursday in the case of VG Siddharth’s death. He said that the government wants to create an environment in which business failure does not become a curse. Insolvency and Bankruptcy Code (IBC) can play an important role in this. So that the business can get out of debt in a respectful manner and the company is not even closed. Sitharaman was replying to a debate in the Lok Sabha on the IBC Amendment Bill.