Coffee Day shares increased 16% following an insolvency settlement with IndusInd Bank

After Coffee Day Global averted insolvency proceedings and made a settlement with IndusInd Bank, its shares were trading 16% higher on the NSE by midday on September 13.

On September 13, Coffee Day Global and IndusInd Bank informed the Chennai bench of the National Company Law Appellate Tribunal (NCLAT) that they had settled their insolvency litigation and withdrew them.

The order allowing Coffee Day Global to be accepted into the insolvency proceedings was stayed by the NCLAT on August 11. The NCLAT asked that IndusInd Bank submit its response within two weeks after noting that it found a few arguable matters that need explanation.

After IndusInd Bank filed a petition alleging default on a Rs 94 crore loan, the Bengaluru bench of the National Company Law Tribunal (NCLT) on July 20 admitted Coffee Day Global, which manages the Cafe Coffee Day chain, to insolvency