Coffee Day Group promoters have a debt of around $1 billion, the report said. The proposed Rs 2,800-crore sale of Global Village Technology Park is expected to help the group service some of its debt.
Yes Bank is the single-largest lender to Coffee Day Group, with an exposure of Rs 1,500 crore, the report said.
“Almost all statutory approvals, including the Karnataka government’s nod, have come, except for Yes Bank’s NOC (no-objection certificate),” a source told the paper.
Moneycontrol could not independently verify the report.
Yes Bank, Coffee Day and Blackstone declined to comment when approached by Mint.
The lender has made the approval conditional to Coffee Day clearing the entire amount due to Yes Bank, or at least the loans taken by subsidiaries Tanglin Developments and Sical Logistics.
Tanglin Developments, the wonder of the park, owes Rs 100 crore to Yes Bank, while Sical Logistics owes Rs 50 crore, the report said.
“Yes Bank has insisted that Coffee Day Group should ideally use the money from the first tranche of the Blackstone deal (Rs 2,000 crore) to pay off the group’s dues to Yes Bank rather than paying the lenders on a pro rata basis,” a source told the publication.
If the deal with Blackstone fails, then Coffee Day Group will find it tough to raise capital through bank loans or stake sales in subsidiaries, the report said.
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