Coffee Day Global Limited, a material subsidiary of Coffee Day Enterprises Limited, has received in-principle approval for a One Time Settlement (OTS) with RARE Asset Reconstruction Company Limited (RARE ARC). This settlement pertains to outstanding loans previously assigned by Karnataka Bank Limited, RBL Bank Ltd, and Kotak Mahindra Bank Limited. The primary reason for opting for the OTS is to reduce the company's debt liability. The total settlement amount is ₹40,00,00,000 (INR 40 Crore), which will be paid in two tranches. The first tranche of ₹25,00,00,000 (INR 25 Crore) is payable immediately upon acceptance of the OTS, proposed to be funded through the sale of mortgaged land. The second tranche of ₹15,00,00,000 (INR 15 Crore) is to be paid within one year from the acceptance of the OTS. This settlement is subject to final approval and the completion of documentation.