NCLAT to Rule on NCLT's Insolvency Order for Coffee Day Global
NCLAT to Rule on NCLT's Insolvency Order for Coffee Day Global

An appeal has been lodged with the National Company Law Appellate Tribunal (NCLAT) contesting the NCLT's decision to commence insolvency proceedings against Coffee Day Global Ltd. (CDGL), the company that owns and manages the renowned Cafe Coffee Day chain.

Malavika Hegde, the Director of CDGL who is currently under suspension, has appealed to the Chennai bench of NCLAT opposing the NCLT's order to commence the Corporate Insolvency Resolution Process (CIRP) against Coffee Day Global.

On Friday, the application requesting a stay on the NCLT order was scheduled for a hearing before an NCLAT bench consisting of Justice Rakesh Kumar Jain and Shreesha Merla.

On July 20, the Bengaluru bench of the NCLT issued a ruling regarding a petition submitted by IndusInd Bank, a financial creditor of the company, seeking payment of Rs 94 crore in dues.

Following the suspension of the board, the NCLT appointed Shailendra Ajmera as the interim resolution professional.

Malavika Hegde, who serves as a director on the suspended board of CDGL and is the wife of late VG Siddhartha, has contested the order.

During the fiscal year 2022-23, CDGL recorded a consolidated total income of 920.41 crore, while reporting a loss of 67.77 crore for the same period.

According to Coffee Day Enterprises Ltd's annual report for FY22, CDGL possesses 495 cafes operating in 158 cities and 285 CCD Value Express kiosks.

Additionally, the brand has 38,810 vending machines providing coffee services in corporate workplaces and hotels.

Coffee Day Enterprises has faced difficulties since the passing of its founder Chairman V. G. Siddhartha in July 2019.

To address its financial challenges, the company has been reducing its debts through asset resolutions and has considerably downsized its operations since the onset of these troubles.


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