Debt reduced significantly, management working to bring firm back on track: Coffee Day Enterprises

NEW DELHI: Coffee Day Enterprises Ltd (CDEL) said it has reduced debt “significantly” and the management is putting its best efforts to get back the company on track.

According to its latest annual report, CDEL’s net debt as on March 31, 2021 was Rs 1,731 crore. “The total loan funds stood at Rs 1,779 crore which comprises of long-term borrowings of Rs 1,263 crore and short-term borrowings of Rs 516 crore,” it said.

The company’s net debt stood at Rs 2,909.95 crore in FY20. Besides, the seven subsidiaries of CDEL are awaiting a report by Justice KL Manjunath, former judge of Karnataka High Court, to take a decision on the recoverability of Rs 3,535 crore.

CDEL had appointed Justice Manjunath to “suggest and oversee actions” for recovery of over Rs 3,535 crore allegedly siphoned out of the company into Mysore Amalgamated Coffee Estates Limited (MACEL), a personal firm promoted by its late founder VG Siddhartha.

“The Management of seven subsidiaries have decided to take a decision on recoverability of Rs 3,535 Crores which is due from MACEL to the subsidiaries of the Company after the receipt of report from Justice KL Manjunath,” it said.

The day-to-day operations of the company are being managed by the promoters’ family and a professional team with the help of the board to ensure the protection of interest of all stakeholders, it added.