Blackstone’s buyout of Coffee Day’s tech park stalls

By Baiju Kalesh & Anto Antony

Beleaguered Coffee Day Enterprises Ltd.’s sale of its technology park to Blackstone Group Inc. is stalled as one of its creditors hasn’t approved the deal, people with the knowledge of the matter said.

Yes Bank Ltd. 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 extended decline to as much as 14.5% in Mumbai, which is the biggest drop 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 VG 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.