CCD Parent Coffee Day Global Under Bankruptcy Process
According to media reports, Coffee Day Global, which manages the Cafe Coffee Day (CCD) chain across India, admitted for corporate insolvency by the bankruptcy court’s Bengaluru bench last week.
On a plea submitted by IndusInd Bank, the National firm Law Tribunal (NCLT) issued an oral order on Thursday against CCD. The tribunal has yet to upload a comprehensive order.
Coffee Day Global, a subsidiary of publicly traded Coffee Day Enterprises, was founded by the late VG Siddhartha, whose death in 2019 surprised many in the business sector. According to the most recent published annual report, the company owed IndusInd Bank Rs 67.3 crore as of March 31, 2022.
According to the reports, the tribunal admitted bankruptcy of the company after negotiations on a one-time payment between IndusInd Bank and the company fell through. According to the NCLT website, IndusInd retained Skanda Legal as counsel, while Coffee Day Global retained Tatva Legal.
According to the company’s annual report for FY22, Coffee Day Global owns 495 Cafe Coffee Day locations in 158 cities and 285 CCD Value Express kiosks. According to the same report, it has also installed 38,810 coffee vending machines at corporate workplaces and hotels.
As of March 2022, it owed Rs 960 crore, which included bank loans and Rs 119 crore in inter-corporate deposits to Tanglin Development, a group entity.
