Coffee Day Global and IndusInd Bank settle insolvency resolution plea at NCLAT

economictimes.indiatimes.com:

Coffee Day Global, its lender IndusInd Bank has decided to withdraw its insolvency resolution application against the company after the private sector lender assigned its loans to ASREC (India), an asset reconstruction company (ARC).
The Chennai bench of the National Company Law Appellate Tribunal (NCLAT) on Wednesday allowed the withdrawal of Coffee Day’s appeal in its oral order after both sides informed that they are settling the matter.

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The detailed order passed by division bench of Justice M. Venugopal and technical member Shreesha Merla was not available till the time of filing the story.
Shares of parent company Coffee Day Enterprises rose 15.6% to trade at Rs 49.5 a share triggered by this development.

In June, the Bengaluru bench of NCLT admitted Coffee Day Global, in an application filed by IndusInd bank for Rs 67 crore default. The tribunal had also appointed EY-backed Shailendra Ajmera as the resolution professional. As per the tribunal’s filing, advocate Pawan Jhabakh was appearing for Coffee Day Global, while the lender was represented by counsel Chitra Nirmala in the case.

Subsequently, the company’s promoter Malavika Hegde challenged the order at appellate tribunal while initiating talks with the private sector bank for an out-of-court settlement, people aware of the matter said.

Unlisted Coffee Day Global owns 495 Café Coffee Day outlets in 158 cities and 285 CCD Value