
Inside the one-time settlement between Cafe Coffee Day and Ares SSG Capital
Subscribe to enjoy similar stories. Coffee Day Enterprises Ltd (CDEL) has negotiated a ₹205-crore settlement with Ares SSG Capital Management to be paid over three years , after the National Company Law Appellate Tribunal (NCLAT) set aside bankruptcy proceedings against the operator of coffee chain Cafe Coffee Day on 27 February. A part of this settlement hinges on the coffee chain achieving certain parameters linked to higher earnings before interest, taxes, depreciation and amortization (Ebitda) over the next three years, two people familiar with the development said.
CDEL told the exchanges on Monday that the company’s board had approved a settlement of ₹205 crore with IDBI Trusteeship. IDBI managed two of Ares SSG Capital Management’s funds - India Opportunities Fund and India Special Situations Fund. This settlement of ₹205 crore includes the amount "realized on sale of 12.41% of the pledged and invoked shares of Coffee Day Global Limited owned by the Company, by the lender to a third party for ₹55 crore," the company told the exchanges on Monday.
While the board of CDEL has approved this settlement in principle, the company is expected to sign an agreement with Ares Managment later this week. "An initial payment of ₹80 crore is to be paid on signing the agreement, which includes ₹55 crore from the sale of the pledged and invoked shares by the lender. A sum of ₹75 crore will be paid within one year of the settlement.
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