NCLT admits Coffee Day Global for bankruptcy process: Report

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The operator of Cafe Coffee Day, Coffee Day Global, has been admitted for corporate insolvency by the Bengaluru bench of the National Company Law Tribunal (NCLT), according to a report by Economic Times on Monday. The bankruptcy court issued an oral order last week, admitting the unlisted company for insolvency based on a petition filed by IndusInd Bank. So far, there has been no official statement from the Coffee Day Group.

Coffee Day Global’s Background and VG Siddhartha’s Tragic Suicide

Coffee Day Global is a subsidiary of Coffee Day Enterprises. VG Siddhartha founded Coffee Day Global. Sadly, he died by suicide in 2019. He left a suicide note for the board of directors and Coffee Day family, revealing his debt situation. As of March 31, 2022, the company had outstanding debt from IndusInd Bank. The amount was Rs 67.3 crore, as mentioned in their latest annual report.

Negotiations Deal Between IndusInd Bank and Coffee Day Global Fails

The tribunal’s decision to admit Coffee Day Global for insolvency came after the negotiations between IndusInd Bank and the company collapsed, as mentioned in the report. The NCLT released an official order stating that Skanda Legal and Tatva Legal are the two counsels handling the case.

Sebi’s Penalty on Coffee Day Enterprises for Fund Diversion

In January 2023, Sebi fined Coffee Day Enterprises Rs 26 crore for transferring funds from subsidiaries to a promoter-related company. The diverted amount was Rs 3,535 crore from seven subsidiaries to Mysore Amalgamated Coffee Estates Ltd.

Coffee Day Enterprises has seven subsidiaries, including Coffee Day Global and Coffee Day Trading. Sebi directed them to recover the outstanding dues from MACEL and its related entities, along with due interest owed to the subsidiaries.

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

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NCLT admits Coffee Day Global for bankruptcy process: Report

The operator of Cafe Coffee Day, Coffee Day Global, has been admitted for corporate insolvency by the Bengaluru bench of the National Company Law Tribunal (NCLT), according to a report by Economic Times on Monday. The bankruptcy court issued an oral order last week, admitting the unlisted company for insolvency based on a petition filed by IndusInd Bank. So far, there has been no official statement from the Coffee Day Group.

Coffee Day Global’s Background and VG Siddhartha’s Tragic Suicide

Coffee Day Global is a subsidiary of Coffee Day Enterprises. VG Siddhartha founded Coffee Day Global. Sadly, he died by suicide in 2019. He left a suicide note for the board of directors and Coffee Day family, revealing his debt situation. As of March 31, 2022, the company had outstanding debt from IndusInd Bank. The amount was Rs 67.3 crore, as mentioned in their latest annual report.

Negotiations Deal Between IndusInd Bank and Coffee Day Global Fails

The tribunal’s decision to admit Coffee Day Global for insolvency came after the negotiations between IndusInd Bank and the company collapsed, as mentioned in the report. The NCLT released an official order stating that Skanda Legal and Tatva Legal are the two counsels handling the case.

Sebi’s Penalty on Coffee Day Enterprises for Fund Diversion

In January 2023, Sebi fined Coffee Day Enterprises Rs 26 crore for transferring funds from subsidiaries to a promoter-related company. The diverted amount was Rs 3,535 crore from seven subsidiaries to Mysore Amalgamated Coffee Estates Ltd.

Coffee Day Enterprises has seven subsidiaries, including Coffee Day Global and Coffee Day Trading. Sebi directed them to recover the outstanding dues from MACEL and its related entities, along with due interest owed to the subsidiaries.

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

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