In a major relief to Coffee Day Enterprises (CDEL), the group's largest creditor YES Bank is expected to give approval for proposed sale of Global Village Technology Park to private equity firm Blackstone Group, according to a Business Standard report. Earlier, the private sector lender had expressed its reservation in giving approval to the Rs 2,800-crore deal.

Share Market Live

NSE

According to the report, YES Bank has softened its stance and decided to render the ‘no objection’ to the Bengaluru-based firm’s decision to the deal. A formal letter of approval is expected to reach Coffee Day Group in the next two-three days, the report said citing sources.

The Group is trying to sell its 90-acre tech park on the outskirts of Bengaluru for repaying debts of Cafe Coffee Day’s (CCD) associate firms and their promoters after its founder V.G. Siddhartha committed suicide in July.

YES Bank is the single-largest lender to the group and its promoters. It has an exposure of at least Rs 1,500 crore to Coffee Day Group firms and their promoters. The company has about $1 billion debt burden on it.

Earlier, YES Bank had reportedly put a condition that it will give its “no objection" to the deal only if Coffee Day agrees to repay the entire loan taken by the group from the bank.

YES Bank, which is dealing with its own liquidity crunch, is the only creditor which has not yet approved the deal with the private equity giant.

First Published:Dec 16, 2019 10:21 AM IST