IDBI Trusteeship moves NCLT for insolvency against Coffee Day Enterprises

Coffee Day Enterprises Ltd. (CDEL) has been the subject of an insolvency petition filed by IDBI Trusteeship Services with the National Company Law Tribunal's Bengaluru bench, alleging debts totaling Rs. 228.45 crore.

In a regulatory statement on Friday, CDEL stated that the firm is obtaining the right legal counsel and would take all necessary steps to safeguard its interest in the aforementioned case. 

"An application has been filed against the Company under Section 7 of the Insolvency and Bankruptcy Code, 2016 read with Rule 4 of the Insolvency and Bankruptcy Rules, 2019 by IDBI Trusteeship Services Limited before the National Company Law Tribunal, Bengaluru for alleged default of Rs 228.45 crore," said CDEL.

A financial creditor may start insolvency proceedings against a corporate debtor under Section 7 of the Insolvency and Bankruptcy Code (IBC).

The National Company Law Appellate Tribunal's (NCLAT) Chennai bench last month granted a stay on the NCLT's decision to file for insolvency against Coffee Day Global Ltd (CDGL), the company that owns and runs the well-known Cafe Coffee Day.

The National Company Law Tribunal (NCLT)'s Bengaluru Bench's order was stayed by the Chennai Bench of the Appellate Tribunal, which also issued notices to the interim resolution professional and its financial creditor IndusInd Bank.