Coffee Day Enterprises Ltd (CDEL), which owns the Café Coffee Day chain, is trying to negotiate a settlement with its creditor IDBI Trusteeship Services in parallel to the ongoing proceeding before insolvency appellate tribunal NCLAT.
On August 14, 2024, the National Company Law Appellate Tribunal (NCLAT) stayed the insolvency proceedings initiated against CDEL by NCLT over the plea of DBI Trusteeship Services Ltd (IDBITSL).
However, this was challenged by IDBITSL before the Supreme Court, which had on January 31, 2025, directed the Chennai bench of NCLAT to dispose of the pending appeal before February 21, 2025.
- Also read: Coffee Day stock plunges as it faces insolvency after NCLT admits creditor’s petition
The apex court had also directed that if the appeal filed by CDEL is not disposed of by NCLAT, then the order passed by the appellate tribunal staying the Corporate Insolvency Resolution Process (CIRP) shall stand vacated automatically.
Updating the status, CDEL in a regulatory filing on Sunday informed: “The arguments in NCLAT are ongoing and in parallel the parties are negotiating for settlement.” The settlement proposal is subject to final approval of both the parties and necessary documentation, it added.
“The company will take all the necessary steps in the best interest of the company,” the filing said.
- Also read: Coffee Day Enterprises Q1 profit at ₹23 cr
On August 8, the Bengaluru bench of the NCLT admitted the plea filed by IDBITSL claiming a default of ₹228.45 crore and appointed an interim resolution professional to take care of the operation of the debt-ridden company.
CDEL is the parent company of Coffee Day Group which operates the Café Coffee Day chain of coffee houses. It also owns and operates a resort, renders consultancy services and is engaged in the sale and purchase of coffee beans.
Coffee Day Enterprises is in trouble after the death of founder Chairman V G Siddhartha in July 2019. It is paring its debts through asset resolutions and has significantly scaled down from the time the trouble started.
