CHENNAI: In a relief to Café Coffee Day, the National Company Law Appellate Tribunal (NCLAT) Chennai bench on Wednesday terminated the insolvency process against Coffee Day Global, a subsidiary of Coffee Day Enterprises, which owns Cafe Coffe Day (CCD).
NCLAT passed an order terminating the Corporate Insolvency Resolution Process (CIRP) after Coffee Day Global Ltd (CDGL) and its creditor IndusInd Bank reached a settlement. CDGL and IndusInd Bank on Wednesday informed the Chennai bench about the settlement and sought permission to withdraw insolvency litigations. A two-member bench comprising Justice M Venugopal and Shreesha Merla took their submissions on record and set aside the order admitting CDGL to insolvency.
The lender has assigned its loan to the asset reconstruction company and filed a joint memo to set aside the NCLT order dated July 20, 2023, Coffee Day Enterprises said. The company was facing bankruptcy after IndusInd Bank filed a petition to the NCLT Bengaluru.
Shares of Coffee Day Enterprises jumped 20% and settled at Rs 51.26 apiece on the BSE. During the day, it jumped 20% to Rs 51.36, its upper circuit limit. On the NSE, it increased 20 % to Rs 51.30 per piece, hitting its upper circuit.
As per the annual report of its parent firm Coffee Day Enterprises 469 cafes in 154 cities and 268 CCD Value Express kiosks. It operated 48,788 vending machines that dispense coffee in corporate workplaces and hotels under the brand.