Beleaguered Coffee Day Enterprises Ltd's sale of its technology park to Blackstone Group Inc has stalled, as one of its creditors hasn't approved the deal, people with knowledge of the matter said.
Yes Bank hasn't issued the so-called no objection certificate as it's seeking assurances on repayments of other loans taken by Coffee Day, said the people, asking not to be identified as the information isn't public. All other creditors have approved the transaction, the people said.
Shares of Coffee Day fell 8.9 per cent to close at Rs 43.85. The stock dropped as much as 14.5 per cent earlier on Monday in its biggest intra-day decline since July 31.
Coffee Day, which runs India's largest coffee chain, has been trying to sell its assets to repay its debt after the unexpected death of its founder billionaire V.G. Siddhartha. On August 14, the company announced that it has entered into a non-binding letter of intent to sell Global Village Tech Park to Blackstone in a deal valued at Rs 2,600 crore ($366 million) to Rs 3,000 crore.
Tanglin Developments Ltd, a unit of Coffee Day that controls Global Village Tech Park in Bengaluru, owes Yes Bank about Rs 100 crore, according to the people. In addition, Coffee Day also owes the lender about Rs 1,400 crore, the people said.
