New Delhi: The total debt of the Coffee Day Group amounts to Rs 4,970 crore and all the obligations to the lenders will be honoured, stated Coffee Day Enterprises Ltd on Saturday. Of the total debt amount, Rs 4,796 crore is secured loans and Rs 174 crore is unsecured loans.

“We reiterate that the debt obligations of the Coffee Day Group will be honoured. We request all the lenders and creditors to give sufficient time to honour the commitments and to unlock the true potential value of the assets. We thank on behalf of 50,000 employees, for whom the Group has provided employment (direct and indirect),” said Coffee Day Enterprises.

Meanwhile, on August 14, the company announced its decision to sell Global Village Tech Park to a private equity major Blackstone for an aggregate consideration ranging between Rs 2,600 crore and Rs 3,000 crore. The Global Village Tech Park was earlier held by its subsidiary Tanglin Developments Ltd. In a regulatory filing, the Coffee Day Enterprises said, “On receipt of the consideration for the sale of Global Village after payment of required statutory payments, the debt position of Coffee Day Group will reduce around by Rs 2,400 crore.”

Thus in the next 45 days, after repaying the debt from the proceeds gained from the sale of Global Village, the debt position of Coffee Day Group (excluding Sical Logistics and Magnasoft Consulting) will be around Rs 1,000. Coffee Day Enterprises noted, “The company expected to have a comfortable position to service the reduced debt obligations.” It further said the financial position and asset base of the Coffee Day Group will be comfortable to service the debt obligations of the entire group in full.

The founder of India’s largest coffee chain Cafe Coffee Day (CCD) and the son-in-law of former Karnataka Chief Minister SM Krishna, VG Siddhartha had left behind a note to his employees that revealed he was in deep debt. His body was found on July 31 after search operations near Mangaluru in Karnataka. In his letter to his company and family members, he expressed his anguish over failure to “create the right profitable business model” despite his “best efforts”. The letter also read, “I am very sorry to let down all the people that put their trust in me.”