NEW DELHI, Sept 7: Cafe chain operator Coffee Day Enterprises on Saturday announced appointment of IDFC Securities as an advisor to identify strategic options and advise it on refinancing of existing debt.
Strategic options include divestment of stake in Coffee Day Global and other group company, according to a regulatory filing by the company.
“The company in its meeting of the executive committee has appointed IDFC securities as the advisor of company and its subsidiaries for identifying the strategic options for Coffee Day Enterprises Ltd (CDEL) including divestment of its holding in Coffee Day Global Ltd and any other group company (other than SICAL Logistics Ltd),” Coffee Day Enterprises said in a regulatory filing.
IDFC Securities would also advise on refinancing of existing debt and raising additional facilities to repay debt in CDEL and its subsidiaries.
Cafe Coffee Day chain of coffee houses, operated by CDEL, has around 1,700 outlets across India. The company has been in trouble after its founder VG Siddhartha took his own life as debt strains began to emerge in his company.
Since Siddhartha’s death, Coffee Day Enterprises has been trying to divest its assets to pare its debts.
Recently, CDEL’s board approved selling its Global Village Tech Park in Bengaluru to Blackstone to help bring down its borrowings. The deal is expected to raise up to Rs 3,000 crore for CDEL. (PTI)