CCL Products approves corporate guarantee for Swiss subsidiary

CCL Products (India) Ltd said its board has approved the issuance of a corporate guarantee in favour of JP Morgan Chase Bank NA, London branch, for credit facilities availed by its wholly owned subsidiary, Continental Coffee SA, Switzerland.

The guarantee covers facilities of up to CHF 20 million or equivalent. The company said the potential liability under the guarantee will not exceed CHF 22 million, which is 110% of the total facility amount extended to the subsidiary.

CCL Products said the guarantee has been provided on an arm’s length basis and constitutes a contingent liability for the company. At present, there is no impact of the guarantee on the company’s financials.