Cafe Coffee Day parent's bankruptcy: What's brewing at Cafe Coffee Global? All about coffee day enterprises' troubles

livemint.com:

Coffee Day Enterprises Ltd, which primarily manages cafe chain outlets under the Cafe Coffee Day (CCD) brand, is experiencing financial difficulties and is in the news for rumoured bankruptcy. Since the death of VG Siddhartha, the founder of Coffee Day Enterprises, the company has encountered difficulties.

Siddhartha committed suicide in 2019 while the company was drowning in debt. Since then, a number of measures have been made by the group to control its debt and turn the company profitable.

But Coffee Day's return to fame could be hampered by the rumoured bankruptcy procedures. Lets take a look at some of the key reasons for how Coffee Day Enterprises' peak moments have turned challenging in the recent times; On Monday, July 24, according to a regulatory filing by Coffee Day Enterprises, parent company of Coffee Day Global, the Bengaluru bench of the National Company Law Tribunal (NCLT) passed an order over a plea brought by a financial creditor of the business who sought payment of ₹94 crore in unpaid debts.

"The application filed by one of the lenders against the material subsidiary Coffee Day Global before NCLT, Bengaluru, has been admitted (oral order) under Section 7 of Insolvency and Bankruptcy Code, 2016 for initiating CIRP for ₹94 crore," the regulatory filing stated. IndusInd Bank petitioned the NCLT, according to a report by Economic Times, and as a result, the coffee chain is now subject to insolvency proceedings.

Coffee Day Global is a subsidiary of Coffee Day Enterprises, which owns 82% of it. Coffee Day Global is awaiting a formal order from the NCLT, according to the firm's exchange filing, and the material subsidiary has told the company that it will pursue the necessary legal action in this regard.