Cafe Day Global, the main operator of widely-known cafe chain Cafe Coffee Day, has been admitted for bankruptcy proceedings, a latest media report said on Monday. The development comes after IndusInd Bank filed a plea with the NCLT in this regard, an Economic Times report said. The report adds that the Bengaluru chapter of National Company Law Tribunal has admitted Cafe Day Global for the corporate insolvency process. The report further added that the Cafe Day Global’s bankruptcy process has been initiated after a breakdown of negotiations between the company and IndusInd Bank. However, there has been no official confirmation or denial by Cafe Day Global regarding the bankruptcy buzz.
The NCLT’s official record says Tatva Legal and Skanda Legal have been appointed as counsels for respondent and applicant. Founded in 1993 via Coffee Day Global Ltd, the Group’s cafes are operating in over 200 cities across India. The business include various aspects related to coffee. From procurement of coffee beans to roasting them, the Group undertakes several coffee-related activities. Coffee Day Global has an extensive portfolio, which include businesses from sectors such as hospitality, logistics, SEZs, financial services and more.
Earlier in January this year, the company faced a Rs 26-crore fine by market watchdog SEBI. The penalty by the Securities and Exchange Board of India was due to diversion of funds from subsidiaries to a firm related to promoters. A subsidiary of listed Coffee Day Enterprises, Coffee Day Global was promoted by the late VG Siddhartha. Latest media reports quoting the annual company report said that according to March 2022 records, the compnay has an outstanding debt of Rs 67.3 crore from IndusInd Bank.