IDBI Trusteeship has filed for insolvency proceedings against Coffee Day Enterprises for an alleged default of INR 228 crore, with IndusInd Bank also seeking insolvency proceedings over a default of INR 94 crore.
Mumbai: IDBI Trusteeship has moved the Bengaluru bench of the National Company Law Tribunal to initiate insolvency proceedings against Coffee Day Enterprises Ltd for an alleged default of ₹228 crore, the company said in a regulatory filing on Friday.
Coffee Day Enterprises is the parent company of the Coffee Day group.
“The company is seeking appropriate legal advice and will take all appropriate steps to protect its interest in the matter,” Coffee Day Enterprises said in the statement on the stock exchanges.
IDBI Trusteeship has filed the application under Section 7 of the Insolvency and Bankruptcy Code, 2016, which provides for a creditor to initiate insolvency against a corporate debtor.
Meanwhile, IndusInd Bank, one of the financial creditors, had moved NCLT against Coffee Day Global for initiating insolvency proceedings. It had a default of ₹94 crore.
On 20 July, NCLT admitted IndusInd’s plea and ordered insolvency against the company.
Shailendra Ajmera was appointed as the interim resolution professional for the company to oversee the day-to-day affairs of the company.
Aggrieved by this order, the company approached the appeals forum—National Company Law Appellate Tribunal—which stayed the NCLT order against the company.