Lenders invoke promised Coffee Day actions
BENGALURU: Edelweiss and IndusInd Bank , two of the many lenders to Coffee Day Enterprises (CDEL), they have invoked 5.2% of the promised actions of the promoters between August 1 and 27, the company said in a statement to BSE . These were actions of Gonibedu Coffee Estates, one of the founders. VG Siddhartha portfolio companies
Around 11% of Siddhartha's personal property has also been invoked by institutions such as Kotak Mahindra Bank, Aditya Birla Money and IDBI Bank in relation to the loans of the companies of the CDEL group.
Financial institutions have been invoking the promised actions since Siddhartha took his own life. CDEL has not made payments on time. The company's stock price fell 5% on Wednesday after the measure. The participation has lost almost 50% of its value since the death of the founder.
Gonibedu, Devadarshini Info Technologies, Coffee Day Consolidations and Sivan Securities are private companies of the Siddhartha family and obtained a total loan of Rs 3,537 million. Siddhartha had promised most of his actions in these companies.