Coffee Day Enterprises has announced a significant debt restructuring initiative, deciding on a ₹70 crore one-time settlement with Axis Bank as part of its strategy to reduce overall debt burden. The company has established a structured payment plan that extends through September 2026, providing a clear timeline for debt resolution.

Settlement Agreement Details

The settlement arrangement represents a strategic approach to debt management, allowing the company to address its financial obligations with Axis Bank through a negotiated one-time settlement amount. This agreement demonstrates the company's proactive stance in managing its debt portfolio and working collaboratively with financial institutions to achieve mutually beneficial outcomes.

Payment Structure and Timeline

The payment plan established through September 2026 provides Coffee Day Enterprises with a structured approach to fulfilling its settlement obligations. This extended timeline allows the company to manage its cash flows effectively while ensuring compliance with the agreed settlement terms. The systematic payment structure is designed to balance the company's operational requirements with its debt resolution commitments.

Debt Reduction Strategy

This settlement with Axis Bank forms part of Coffee Day Enterprises' broader debt reduction strategy. By negotiating a one-time settlement, the company aims to lower its overall debt burden and improve its financial position. The agreement reflects the company's commitment to addressing its financial obligations while maintaining operational stability and business continuity.

Coffee Day Enterprises Limited has announced a significant debt restructuring development involving its material subsidiary Coffee Day Global Limited. The subsidiary has received in-principle approval for a One Time Settlement (OTS) with RARE Asset Reconstruction Company Limited (RARE ARC) worth ₹40.00 crores.

Settlement Details

The OTS covers outstanding loans that were originally assigned by three major banks - Karnataka Bank Limited, RBL Bank Ltd, and Kotak Mahindra Bank Limited to RARE ARC. This settlement represents a full and final resolution of all dues related to these loan accounts.

Payment Structure

The settlement amount has been structured into two distinct tranches to facilitate manageable repayment:

Strategic Rationale

Coffee Day Global Limited has opted for this One Time Settlement primarily to reduce its debt liability. This debt restructuring move is expected to provide the subsidiary with improved financial flexibility and reduced interest burden going forward.

Regulatory Compliance

The announcement was made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has emphasized that the settlement is subject to final approval and completion of necessary documentation.

This development represents a significant step in Coffee Day Enterprises' ongoing efforts to streamline its subsidiary's financial obligations and optimize its capital structure.