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- NCLT Orders Insolvency Proceedings Against Coffee Day Enterprises Limited
Bangalore2 minutes ago
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The National Company Law Tribunal (NCLT) has ordered the initiation of insolvency proceedings against Coffee Day Enterprises Limited (CDEL). Coffee Day Enterprises is the parent company of the Coffee Day Group. The Coffee Day Group operates the Cafe Coffee Day chain of coffee houses.
According to PTI report, the Bengaluru bench of the Corporate Disputes Tribunal (NCLT) on August 8 accepted the petition filed by IDBI Trusteeship Services Limited (IDBITSL).
CDEL accused of default of Rs 228.45 crore
The petition had claimed a default of Rs 228.45 crore and had appointed an interim resolution professional to look after the operations of the debt-ridden company.
CDEL had defaulted on coupon payments of NCDs
CDEL owns and operates a resort. Apart from this, the company provides consultancy services. The company also sells and purchases coffee beans. CDEL had defaulted on coupon payments of redeemable non-convertible debentures (NCDs).
Financial creditors had subscribed to 1,000 NCDs through private placement and paid Rs 100 crore for the subscription in March 2019.
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