Coffee Day Global, which operates the Cafe Coffee Day chain across India, was admitted for corporate insolvency by the Bengaluru bench of the bankruptcy court last week, said people aware of the development. The National Company Law Tribunal (NCLT) passed an oral order on Thursday to admit the unlisted company based on a petition filed by IndusInd Bank.
A detailed order is yet to be uploaded by the tribunal.
Coffee Day Global, a subsidiary of listed Coffee Day Enterprises, was promoted by the late VG Siddhartha, who committed suicide in 2019 which shocked many in the business community.
The company has outstanding debt of ₹67.3 crore from IndusInd Bank as on March 31, 2022, according to the latest available annual report. The tribunal admitted the company after negotiations on a one-time settlement between IndusInd Bank and the company collapsed, said one of the persons cited above. Coffee Day Group did not respond to ET’s request for comment.
The NCLT website showed that IndusInd had appointed Skanda Legal while Coffee Day Global had Tatva Legal as their counsels.
Unlisted Coffee Day Global owns 495 Cafe Coffee Day outlets in 158 cities and 285 CCD Value Express kiosks, according to the company’s annual report for FY22. Additionally, it has installed 38,810 coffee vending machines in corporate workplaces and hotels, the same report said.
It has ₹960 crore debt as of March 2022, which includes bank loans and inter-corporate deposits of ₹119 crore to Tanglin Development, a group entity.
Source: Economic Times