Yes Bank and Rabobank, lenders to Coffee Day Global Ltd (CGDL), have urged repayment of their entire dues for granting a no-objection certificate (NOC) to the proposed deal, the people said on condition of anonymity. CDGL, a unit of publicly traded Coffee Day Enterprises Ltd, runs the Café Coffee Day (CCD) outlets.
“The deal requires NOC from 14 lenders of CDGL. Most of them have in-principle agreed to grant NOC, except Rabobank and Yes Bank. These are the two of the largest lenders, and the coffee vending business, along with a few other assets of CDGL, were collateralized with them for the loan that is worth at least Rs 300 crores,” said one of the two people.
The dues to be paid back by CDGL are worth around Rs 100 crores to Yes Bank and Rs 200 crores to Rabobank. Karnataka Bank is the largest Indian lender to CDGL, with a loan of Rs 175 crores.
Tata Consumer Products Ltd has offered to buy the coffee vending business from CGDL for at least Rs 1,000 crores. The Tata group also operates the Starbucks cafe chain in India. The country’s largest conglomerate is looking at Coffee Day’s vending machine business for synergies.
CDGL provides it’s coffee grinding-cum-vending machines, own coffee beans, and fresh milk to more than 60,000 loyal clients across multiple markets, including malls, offices, other public places, schools, and colleges. The company has a large number of corporate customers and generates steady revenues.