India’s National Company Law Tribunal has accepted the corporate insolvency plea filed against Coffee Day Global, the operator of the well-known Indian coffeehouse chain Café Coffee Day, as reported by the Economic Times on Monday.
The insolvency proceedings were initiated following a petition submitted by IndusInd Bank. However, Coffee Day Global’s parent company, Coffee Day Enterprises, has yet to issue an official statement regarding this matter.
Coffee Day Enterprises, which is the owner of Coffee Day Global, was established by the late VG Siddhartha, who tragically took his own life in 2019. In his suicide note addressed to the company’s board of directors and the Coffee Day family, he mentioned being burdened with significant debts.
As per the company’s recent annual report, as of March 31, 2022, the outstanding debt owed to IndusInd Bank amounted to over $8 million.
It has been reported that the dispute between Coffee Day Group and IndusInd Bank failed to reach a resolution, leading to the bank’s decision to take legal action against the company.
Café Coffee Day, a subsidiary of Coffee Day Global Limited, was founded in 1996 by VG Siddhartha. Headquartered in Bengaluru, the coffeehouse chain boasts more than 1,000 outlets spread across India.
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