ICRA places Coffee Day rating on watch; VG Siddhartha dead

The rating agency has revised its rating for the company's Rs. 315 crore term loan from developing implications to negative implications. The company's board appoints Interim Chairman and Interim Chief Operating Officer.

ICRA rating agency took cognisance of the reports that Coffee Day group’s promoter VG Siddhartha has gone missing and put the rating on the company's Term Loans of Rs. 315 crore [ICRA]BBB+ @; the rating placed on watch with negative implications watch with negative implication from watch with developing implication. The agency cited the rationale that the recent development may have a negative impact on the operations of the company and the same cannot be ascertained as yet and that it can have a critical bearing on the group’s operations and credit profile.

VG Siddartha, founder, promoter, Chairman and Managing Director of Coffee Day Enterprises Limited, the company that operates Café Coffee Day chain of restaurants had gone missing on Monday evening and his body was recovered from the banks of Netravathi River in Mangaluru, following a search operation.

Meanwhile, the company's board held a meeting on Wednesday and approved the appointment of SV Ranganath as the Interim Chairman of the Board and Nitin Bagmane as an Interim Chief Operating Officer of the Company.

The stock of Coffee Day dipped 20 per cent to Rs. 123.25 per share and was struck in lower circuit for the second consecutive day on Wednesday.