IDBI Trusteeship moves NCLT for insolvency proceedings against Coffee Day for alleged default of Rs 228 cr

Coffee Day Enterprises Ltd, which operates the Cafe Coffee Day outlets, said on Friday that an application has been filed at NCLT against the company under Section 7 of Insolvency and Bankruptcy Code.

The application has been filed by IDBI Trusteeship Services before National Company Law Tribunal, Bengaluru for alleged default of Rs 228 crore.

"An application has been filed against the Company under Section 7 of the Insolvency and Bankruptcy Code, 2016 read with Rule 4 of the Insolvency and Bankruptcy Rules, 2019 by IDBI Trusteeship Services Limited before the National Company Law Tribunal, Bengaluru for alleged default of Rs 228,45,74,180," said the company in a stock exchange filing.

"The Company is seeking appropriate legal advice and will take all appropriate steps to protect its interest in the aforesaid matter," added Coffee Day.

Coffee Day Enterprises has been in trouble after the death of founder V G Siddhartha in July 2019. It is paring its debts through asset resolutions and has significantly scaled it down from the time the trouble started.

The firm has posted a net profit of Rs 24.57 crore for June quarter 2023-24. In the year-ago period, it incurred a loss of Rs 11.73 crore.

Revenue from operations was at Rs 223.20 crore in the quarter under review. It was Rs 189.63 crore in the year-ago period, as per the quarterly results of Coffee Day Enterprises Ltd (CDEL).

Its vending machine count went up to 50,870 in June quarter from 46,603 in the year-ago period.