According to a recent media report, Cafe Day Global, the main operator of the popular cafe chain Cafe Coffee Day, has entered into bankruptcy proceedings. The development occurred after IndusInd Bank filed a plea with the National Company Law Tribunal (NCLT). The Bengaluru chapter of NCLT has admitted Cafe Day Global for the corporate insolvency process following a breakdown of negotiations between the company and IndusInd Bank. However, Cafe Day Global has not officially confirmed or denied the bankruptcy rumors.
NCLT Appoints Legal Team for Bankruptcy Proceedings
Tatva Legal and Skanda Legal have been appointed as counsels for the respondent and applicant in this matter, as per the NCLT’s official record. Cafe Day Global, founded in 1993 through Coffee Day Global Ltd, operates cafes in more than 200 cities across India and is involved in various aspects related to coffee, from procurement to roasting. The company has an extensive portfolio, including businesses in hospitality, logistics, SEZs (Special Economic Zones), financial services, and more.
SEBI Imposes Rs 26 Crore Fine for Fund Diversion, Latest Reports Reveal Outstanding Debt to IndusInd Bank
Earlier in January of the same year, the company faced a fine of Rs 26 crore from market regulator SEBI (Securities and Exchange Board of India) due to fund diversion from subsidiaries to a firm related to promoters. Cafe Day Global, a subsidiary of listed Coffee Day Enterprises, was promoted by the late VG Siddhartha. According to the latest media reports citing the annual company report from March 2022, the company had an outstanding debt of Rs 67.3 crore owed to IndusInd Bank.
Café Coffee Day (CCD) is a coffeehouse chain with a global presence, based in Bengaluru, Karnataka, India. It operates as a subsidiary of Coffee Day Enterprises Limited. CCD has expanded its reach to various international locations, including Austria, Czech Republic, Malaysia, Nepal, and Egypt
