The company will settle the outstanding debt of two debenture holders in three tranches, which includes the amount realized from the sale of 12.41% of the pledged and invoked shares of Coffee Day Global owned by the company, to a third party for Rs 55 crore.
The draft settlement agreement was approved by the audit committee and the members of the board in their meeting held on March 17, 2025.
“This settlement ensures the debt reduction commitment of the company and it’s subsidiaries in the interest of all stakeholders. The company remains committed to fulfilling its obligations and ensuring long-term value creation for stakeholders,” it added.
Earlier, on 3rd March 2025, the National Company Law Appellate Tribunal (NCLAT) dismissed a bankruptcy plea filed against the company by IDBI Trusteeship Services.
The core of the legal dispute revolved around an alleged default of Rs 228 crore. Initially, the Bengaluru bench of the National Company Law Tribunal (NCLT) had admitted IDBI Trusteeship’s plea, triggering the commencement of the Corporate Insolvency Resolution Process (CIRP).
In response, Coffee Day Enterprises swiftly challenged the NCLT's decision, filing an appeal with the NCLAT. The appellate tribunal initially granted a stay on the CIRP, providing temporary relief to the company. However, IDBI Trusteeship Services subsequently escalated the matter to the Supreme Court, seeking to reinstate the insolvency proceedings. The Supreme Court then directed the Chennai bench of the NCLAT to expedite the resolution of the pending appeal, setting a deadline of February 21, 2025. Failure to meet this deadline would result in the automatic disposal of the appeal and the resumption of the insolvency process.
As the February deadline approached, and with the NCLAT unable to deliver its verdict within the stipulated time, the insolvency proceedings temporarily resumed. However, the NCLAT delivered its final verdict, ruling in favor of Coffee Day Enterprises and dismissing the bankruptcy plea.
Coffee Day Enterprises is the parent company of the Coffee Day Group, which houses Café Coffee Day that pioneered the coffee culture in the chained café segment in India.
On a consolidated basis, Coffee Day Enterprises reported net loss of Rs 10.28 crore in Q3 December 2024 as against net profit of Rs 69.19 crore in Q3 December 2023. Net sales rose 9.15% year-on-year to Rs 280.41 crore in Q3 December 2024.