The debt level of Coffee Day Enterprises has been reduced "significantly" to ₹1,810 crore as on March 31, the company said in its latest annual report.

However, there have been certain defaults in repayments of principal and interest of the loans, and certain lenders have exercised their rights, including recalling the loans, Coffee Day Enterprises Ltd (CDEL) said.

"The debt levels have reduced significantly from ₹7,214 crore as on March 31, 2019 to ₹1,898 crore as at the end of March 31, 2021 and to ₹1,810 crore as of March 31, 2022," CDEL added.

Following a circular from market regulator SEBI, CDEL, on April 6, 2022, disclosed defaults on interest payments and repayment of principal amount on loans from banks, financial institutions and unlisted debt securities for the March quarter.

"As per the disclosure, the company has defaulted in payment of interest and principal amounting to ₹230.66 crore on loans/cash credits from banks/financial institutions and ₹249.02 crore towards non-convertible debentures," it said.

Moreover, CDEL has informed that ₹ 3,430.67 crore due by Mysore Amalgamated Coffee Estates Limited (MACEL, to various subsidiaries and a joint venture of the company, is yet to be recovered.

It has asked its subsidiaries and one joint venture firm to file suit against MACEL for recovery following the recommendation of Justice H N Nagamohandas.

After the death of founder Chairman V G Siddhartha in July 2019, CDEL was in trouble and paired debts through the resolution of assets.

In March 2020, CDEL announced repaying ₹1,644 crore to 13 lenders after concluding a deal with Blackstone Group to sell its technology business park.

The company’s day-to-day operations are being managed by the CEO and whole-time director and professional team with the help of the board members to ensure protection of interest of all stakeholders viz, shareholders, lenders, vendors, employees etc.

CDEL's subsidiary, Coffee Day Global Ltd, owns and operates the popular coffee chain CCD. It owns 495 cafes in 158 cities and 285 CCD Value Express kiosks.

There are 38,810 vending machines that dispense coffee in corporate workplaces and hotels under the brand.

In the pre-pandemic FY 2019-20, the total number of cafes stood at 1,192.

The National Company Law Tribunal has already initiated a Corporate Insolvency Resolution Process against one of the subsidiaries, Sical Logistics Ltd, which runs port terminals and container freight stations, the annual report said.

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