Coffee Day gets Registrar of Companies approval to extend AGM by 45 days

Coffee Day Enterprises Ltd (CDEL) has received regulatory approval for extending its annual general meeting (AGM) by 45 days from Registrar of Companies (RoC), the company said in an exchange filing.

According to Companies Act, every company must hold its AGM within six months from the closing date of financial year, which ends on September 30. So, CDEL will now have 45 days more time to hold its AGM post this deadline.

"The company got approval from RoC, Bengaluru for extension of AGM for the financial year ended March 31, 2019 which is due to be held on or before September 30, 2019 as per the requirement of Section 96 of Companies Act, 2013, for another period of 45 days," it said.    

Earlier, the Bengaluru-based firm has also informed stock exchanges regarding delay in announcement of its quarterly results after the demise of its chairman VG Siddhartha.

Towards the middle of this month, the conglomerate with interests in coffee to IT services, has appealed its lenders and creditors to give it sufficient time to honour its repayment obligations. Putting its debt liability at Rs 4,970 crore, the company has asserted that its deleveraging efforts would ensure timely repayment to creditors. Especially, its move to divest the Global Village Tech Park is likely to reduce the group’s total debt significantly to around Rs 2,400 crore, it had said. Currently, private equity major Blackstone is doing the due diligence for buying out the tech park at a valuation ranging from Rs 2,600 crore to Rs 3,000 crore.

CDEL's share price has recovered around 34 per cent since August 16 to close at Rs 83.75 per share at BSE on Wednesday after losing more than 65 per cent from July last week of this year.