Blue Coast Hotels Limited — Important, 07-01-2025: Defaults on Payment of Interest/Principal

Blue Coast Hotels has disclosed defaults in paying interest and redeeming preference shares, revealing a total financial indebtedness of ₹34.57 crore. Of the ₹10.37 crore in outstanding unlisted debt securities, ₹6.22 crore is in default, which includes ₹4.85 crore in unpaid dividends. The company has reduced the coupon rate on its unlisted redeemable preference shares from 10% to 0.01% and has converted some preference shares into convertible preference shares, which are set to transform into equity. This situation may prompt concerns among investors about liquidity and debt management, though the restructuring efforts could present an opportunity for future equity growth.