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NCLT initiates insolvency proceedings against Coffee Day Enterprises over Rs 228 crore debt default
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IDBI Trusteeship Services files plea citing default in payment of coupon payments of non-convertible debentures
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Interim resolution professional appointed to manage operations of debt-ridden company
The National Company Law Tribunal (NCLT) has ordered insolvency proceedings against Coffee Day Enterprises Ltd, the parent company of Cafe Coffee Day, over a debt default of Rs 228 crore. IDBI Trusteeship Services Ltd filed a plea citing default in payment of coupon payments of non-convertible debentures.
The NCLT bench rejected Coffee Day Enterprises’ opposition to the plea, stating that the company had acknowledged debt in its annual reports. An interim resolution professional has been appointed to manage the operations of the debt-ridden company.
This is the second insolvency plea admitted against a Coffee Day group company, after Coffee Day Global Ltd, which owns and operates Cafe Coffee Day chain, faced a similar plea over Rs 94 crore dues. Coffee Day Enterprises has been scaling down its operations and paring debts through asset resolutions since the death of its founder Chairman V G Siddhartha in 2019.
