Coffee Day Enterprises Default: Rs 425.38 Crore Debt

New Delhi, Apr 7 (PTI) Coffee Day Enterprises Ltd has reported a total default of Rs 425.38 crore on payments of interest and repayment of principal amount on loans from banks, financial institutions and unlisted debt securities as NCDs and NCRPS as on March 31, 2025.

Coffee Day Enterprises Ltd (CDEL), which is paring its debts through asset resolution, in a regulatory update, said "the delay in debt servicing is due to liquidity crisis".

"Due to default in repayment of interest and principal to the lenders, the lenders have sent 'loan recall' notices to the Company as well as initiated legal disputes. In view of the loan recall notices, legal disputes and pending one-time settlement with the lenders, the company has not recognised interest from April 2021," it said.

CDEL has reported a default of Rs 174.83 crore on the payment of the principal amount on loans or revolving facilities like cash credit from banks or financial institutions as of March 31, 2025.

Besides, it has also defaulted in payment of interest of Rs 5.78 crore on the above, CDEL said.

While for unlisted debt securities such as non-convertible debentures (NCDs) and non-convertible redeemable preference shares (NCRPS), the outstanding amount of default is Rs 200 crore as of March 31, 2025, along with a default in payment of interest of Rs 44.77 crore on the same.

After the death of founder and then chairman V G Siddhartha in July 2019, CDEL pared debts through resolution of assets.

In February this year, the National Company Law Appellate Tribunal (NCLAT) had set aside insolvency proceedings against Coffee Day Enterprises.

On August 8, 2024 the Bengaluru bench of the NCLT (National Company Law Tribunal) admitted the plea filed by IDBI Trusteeship Services Ltd (IDBITSL) claiming a default of Rs 228.45 crore and appointed an interim resolution professional to take care of the operation of the debt-ridden company.

This was immediately challenged before the appellate tribunal NCLAT, which on August 14, 2024, stayed the insolvency proceedings initiated against CDEL by NCLT over the plea of IDBITSL.

In March 2020, CDEL announced repaying Rs 1,644 crore to 13 lenders after concluding a deal with Blackstone Group to sell its technology business park.

The company is also pursuing a legal course to recover over Rs 3,535 crore allegedly siphoned out of the company into Mysore Amalgamated Coffee Estates Ltd (MACEL), a personal firm promoted by its late founder V G Siddhartha.