NCLT Approves Insolvency Proceedings Against Cafe Coffee Day's Parent Company

The National Company Law Tribunal (NCLT) has approved insolvency proceedings against Coffee Day Enterprises Ltd (CDEL), the parent company of Cafe Coffee Day, over a ₹228 crore default. IDBI Trusteeship Services Ltd (IDBITSL) filed the plea, citing unpaid coupon payments on non-convertible debentures (NCDs) issued in 2019. Despite CDEL's opposition, the NCLT acknowledged the company's debt, noting defaults between 2019 and 2020. An interim resolution professional has been appointed to manage the company, which has been struggling with debt since the death of founder V.G. Siddhartha in 2019.


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