National Company Law Tribunal accepted the petition filed against CCD and started the bankruptcy process gave the order to start
CCD: कंगाल हुई कैफे कॉफी डे, संपत्ति बेचकर बैंक वसूलेंगे पैसा
The famous Cafe Coffee Day (CCD) has finally reached the verge of being sold. The National Company Law Tribunal has accepted the petition filed against CCD and has ordered to start the bankruptcy process.
NCLT has ordered to start bankruptcy proceedings against Coffee Day Enterprises Limited (CDEL), the parent company of Coffee Day Group. Coffee The Day Group operates the Café Coffee Day chain of coffee houses.
The Bengaluru bench of the National Company Law Tribunal (NCLT) on August 8 admitted the petition filed by IDBI Trusteeship Services Limited (IDBI TSL). The petition claimed default of Rs 228.45 crore and sought operational capacity of the debt-ridden company. An interim resolution professional was appointed to take care of the situation.
Many businesses other than coffee
CDEL owns and operates a resort and is in the business of coffee beans along with providing consultancy services. The company also runs several cafes across the country. Apart from this, the company’s cafe houses are also running in Vienna, Czech Republic, Malaysia, Nepal and Egypt. Along with coffee, it is also working in freight transport, financial services, leasing commercial space sector.
In which default is the company stuck CCD’s parent company CDEL had issued redeemable non-convertible debentures (NCDs) to raise money. Its coupon payment has been defaulted. Financial lender IDBI Bank had subscribed to 1,000 NCDs through private placement and paid Rs 100 crore for the subscription in March, 2019. For this, CDEL entered into an agreement with IDBI TSL and the debenture trustee for the debenture holders. CDEL defaulted on payment of total coupons due on various dates between September, 2019 and June, 2020. Hence, the Debenture Trustee, on behalf of all the Debenture holders, informed CDEL of the default on July 28, 2020. issued a notice of Rs 100 crore and approached NCLT.
Company running in profit
It is not that the company’s business has gone into loss right now. Even though the company has defaulted in payment of Rs 228 crore, its business is running in profit. The company earned a net profit of about Rs 24.57 crore in the last financial year. Earlier, the company was running at a loss of Rs 12 crore. Data till August 1, 2024 shows that the market cap of the company has reached Rs 1,078 crore.
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