NCLT okays insolvency proceedings against Cafe Coffee Day’s parent company over Rs 228 crore default

The National Company Law Tribunal (NCLT) has ordered initiating insolvency proceedings against Coffee Day Enterprises Ltd (CDEL), the parent company of Coffee Day Group, which operates Cafe Coffee Day chain of coffee houses. 

The Bengaluru bench of the NCLT (National Company Law Tribunal) on August 8 admitted the plea filed by IDBI Trusteeship Services Ltd (IDBITSL) claiming a default of Rs 228.45 crore and appointed an interim resolution professional to take care of the operation of the debt-ridden company. 

Coffee Day Enterprises Ltd, which also owns and operates a resort, renders consultancy services and is engaged in the sale and purchase of coffee beans, had defaulted in the payment of coupon payments of redeemable non-convertible debentures (NCDs). 

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