Coffee Day stares at bankruptcy as asset sale fails to make headway

The lenders to Coffee Day Enterprises Ltd (CDEL), which owns and operates a café chain, are considering sending the company to the National Company Law Tribunal (NCLT) for debt resolution after the firm announced that it had defaulted on its loans in the March 2021 quarter.

According to an exchange filing, for the March quarter, CDEL’s outstanding debt was Rs 280 crore. Attributing the delay in debt servicing to a liquidity crisis, the company said its total indebtedness was Rs 518 crore. The lenders have invoked the shares pledged by the company’s subsidiaries to recover their dues.

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