Strategic alternatives being explored to reduce Rs 1.5K-cr debt: Sical

Sical Logistics on Thursday said it has an external debt of Rs 1,488 crore, which has been secured by the personal guarantees of late Coffee Day Group promoter V G Siddhartha, and "strategic alternatives" are being worked out to deleverage the company.

The Coffee Day Group company, which runs port terminals and container freight stations, took the decision to deleverage at its board meeting held on August 2.

"Accordingly, in this direction, all the strategic alternatives are being worked out," Sical Logistics Chairman R Ram Mohan said at its Annual General Meeting held in Chennai on Thursday.

Moreover, immediately after the demise of VG Siddhartha, ratings agencies started downgrading the firm's rating, he added.

"The external debt of Sical as on date stands at Rs 1,488 crore. Almost entire debt has been secured by the personal guarantees of the promoter Late VG Siddhartha," Mohan said.

Sical Logistics' consolidated revenues for financial year 2018-19 stood at Rs 1,531 crore as against Rs 1,199 crore in the previous fiscal.

Siddhartha's body was found in the Netravati river in Dakshina Kannada district of Karnataka on July 31, a day after he went missing.

Since Siddhartha's death, Coffee Day Enterprises Ltd (CDEL) has been trying to divest its assets to pare debt.

Recently, CDEL's board of directors approved the sale of its Global Village Technology Park in Bengaluru to Blackstone for up to Rs 3,000 crore.