Coffee Day Group announced on Saturday that its total outstanding debt was Rs 4,970 crore, including Rs 4,796 crore of secured loans and Rs 174 crore of unsecured loans.

“The management has decided to clarify its debt situation, the expected reduction and the completion of the ongoing divestment transactions,” said the city company in an application for approval with the BSE.

Of the total debt, those of Coffee Day Enterprises Ltd are Rs 480 crore, Coffee Day Global Ltd is Rs 1097 crore, Way 2 Wealth Ltd is Rs 121 crore, Tanglin Developments Ltd is Rs 1622 crore and Tanglin Retail Reality Developments Ltd at Rs 15 crore, Coffee Day Hotels and Resorts Ltd Rs 137 crore, Sical Logistics Ltd Rs 1,488 crore and Magnasoft Consulting India Ltd Rs 10 crore.

“The clarification comes in light of speculation in some media about our debt position following the death of our Founder Chairman VG Siddhartha on July 31,” company secretary Sadananda Poojary said in the filing.

The company’s board decided on August 14 to sell its subsidiary Tanglin Developments Ltd’s Global Village Tech Park in Bengaluru for Rs 2,600-3,000 crore within the next 30-45 days to US private equity firm Blackstone.

“The group’s debt position will be reduced to Rs 2,400 crore upon receipt of proceeds from the sale of Blackstone’s Global Village and settlement of statutory payments,” the filing reads.

The company is expected to be able to service the reduced debt.

“Sical has been working to dispose of certain assets, the proceeds of which will reduce debt,” Mr Poojary said.

The company has asked lenders and creditors to give it time to meet obligations and unlock the potential value of its assets.

The group has provided direct and indirect jobs to around 50,000 people.