Coffee Day Group's largest creditor, Yes Bank, seems to be reluctant to give its approval to the Rs 2,800 crore deal in which the group is to sell its Global Village Technology Park to private equity firm Blackstone Group, reported livemint.
According to the report, which cites people familiar with the sale process, the lender has said that it will approve the deal or give its "no objection" to the deal only if the group agrees to repay its entire loan taken from the bank or at least, the amount taken by Tanglin Developments Ltd (which owns the tech park) and Sical Logistics, its subsidiaries.
The report added that the two subsidiaries together owe around Rs 150 crore to the lender.
“Almost all statutory approvals, including the Karnataka government’s nod, have come, except for Yes Bank’s NOC," one of the sources was quoted as saying in the report.
“Yes Bank has insisted that Coffee Day Group should ideally use the money from the first tranche of the Blackstone deal ( Rs 2,000 crore) to pay off the group’s dues to Yes Bank rather than paying the lenders on a pro-rata basis," the person added, as mentioned in the report.
When contacted by the paper, Yes Bank, Coffee Day and Blackstone declined to comment.
Coffee Day companies and promoters have total debts of at least $1 billion while Yes Bank's exposure is at least Rs 1,500 crore.