Coffee Day unit Sical Logistics faces insolvency proceedings

YES Bank has claimed Rs 173 crore, while IDFC First Bank has claimed Rs 121 crore, as per the company’s latest filings.
The order is based on a payment default to MOL TOYOFUJI Automotive Logistics, which has been recognised as an Operational Creditor.

CHENNAI : The Chennai bench of National Company Law Tribunal (NCLT) has ordered an insolvency resolution process of Sical Logistics, a public company under the Coffee Day Group, over a payment default of Rs 62 lakh to an operational creditor.

The order was pronounced by the NCLT on March 10 , 2021, and a meeting of the Committee of Creditors took place this week, the company informed exchanges.

Sical’s financial creditors include Axis Bank, Bank of Baroda, YES Bank, etc.

YES Bank has claimed Rs 173 crore, while IDFC First Bank has claimed Rs 121 crore, as per the company’s latest filings. The other financial creditors have claimed smaller amounts.

The order is based on a payment default to MOL TOYOFUJI Automotive Logistics, which has been recognised as an Operational Creditor. The creditor had submitted that Sical Logistics (Corporate Debtor) had availed yard handling and stevedoring operations at Ennore, Kandla, Cochin and New Mangalore ports and other related services for coastal shipping of cars within India, but defaulted on payments on invoices.

The company did not offer any comments on the matter.

Earlier this week, a Business Standard report suggested that the lenders to Coffee Day are likely to drag the company to the NCLT. Coffee Day Enterprises Ltd in a filing to the exchanges this week, said it has a total outstanding amount of Rs 280 crore on loans from banks or financial institutions.

The company said the total financial indebtedness of the company was Rs 518 crore, and added that the the delay in debt servicing was due to a “liquidity crisis”.

Source : CNBC TV18