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

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)