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Siddhartha's letter could be referring to a debt deal, say PE insiders

CCD has three PE investors - KKR India, Rivendell PE (formerly New Silk Route) and Affirma Capital

Cafe Coffee Day outlet in Connought Place in New Delhi | Photo - Dalip Kumar
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Cafe Coffee Day outlet in Connought Place in New Delhi | Photo: Dalip Kumar

Ranju Sarkar New Delhi
Café Coffee Day founder V G Siddhartha could be referring to a debt deal, say private equity (PE) industry insiders, when he wrote in a letter that he was under pressure from a PE firm to buy back shares. 

It could be a mezzanine or structured debt deal, where non-payment of principal can trigger other covenants such as a put option, requiring the borrower to buy back preference shares or debentures, say insiders. The lender could be the credit arm of a large private equity firm. 

CCD has three PE investors — KKR India, Rivendell PE (formerly New Silk Route)

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First Published: Jul 30 2019 | 10:09 PM IST

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