BANGALORE: The rating agency ICRA has made a multi-notch downgrading of the long-term rating assigned to Rs3 I 5 crore long term loans of Coffee Day Enterprises Ltd (CDEL) from ICRA BB+ with negative outlook to ICRA D, which indicates default or likelihood of default.
The company has been in deep financial trouble following the unexpected demise of the Coffee Day Group founder V G Siddhartha around one and a half month ago, triggering speculation that the group as well as Siddartha might have undisclosed debts.
The rating action follows the delay in debt servicing by CDEL’s flagship subsidiary – Coffee Day Global Ltd and Sical group of companies.
“Considering the present scenario of the organization post the death of our Promoter, Chairman and Managing Director there was delay in obtaining the said communication,” a company statement said adding that the company is in the process of deleveraging its assets to ensure liquidity position for the company
