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Women walk past a closed Cafe Coffee Day shop in Srinagar, Wednesday, July 31, 2019. Photo: PTI
In two days, Coffee day Enterprises share price has tumbled 28.6 per cent after the company informed the exchanges that the National Company Law Tribunal (NCLT), Bengaluru bench, has admitted the company for insolvency proceedings.
Coffee Day Enterprises Ltd (CDEL) is the parent company of Coffee Day Group, which operates Cafe Coffee Day chain of coffee houses.
CDEL owns and operates a resort, renders consultancy services and is engaged in the sale and purchase of coffee beans. According to a PTI report, it had defaulted in the payment of coupon payments of redeemable non-convertible debentures (NCDs).
IDBI Bank had subscribed 1,000 NCDs through private placement and paid Rs 100 crore towards the subscription in March 2019. For that Coffee Day Enterprises had executed and entered into an agreement with IDBITSL agreeing to appoint as the debenture trustee for the debenture holders.
Coffee Day Enterprises has been under the line of fire of lenders since 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.
In the April-June quarter of FY25 (Q1FY25) Coffee Day Enterprises Ltd had a total reported default of Rs 433.91 crore on payments of interest and repayment of principal amount on loans from banks, financial institutions, and unlisted debt securities as NCDs and NCRPS.
Meanwhile, the Board of Directors of Coffee day Enterprises is scheduled to meet on August 14, 2024, to consider and approve the unaudited financial results of the company for the quarter ended June 30, 2024.
First Published: Aug 13 2024 | 1:53 PM IST
