Coffee Day Enterprises Battles Insolvency Yet Seeks Settlement Amidst Legal Challenges

Coffee Day Enterprises Ltd is negotiating with creditor IDBI Trusteeship Services to settle ongoing insolvency proceedings. Despite the NCLAT's temporary stay on insolvency, IDBITSL challenged it, resulting in a Supreme Court directive for resolution before February 2025. Meanwhile, settlement discussions and legal proceedings continue.

Coffee Day Enterprises Ltd (CDEL), the company behind the popular Cafe Coffee Day chain, is actively negotiating a settlement with its creditor, IDBI Trusteeship Services. This move comes as parallel proceedings continue before the National Company Law Appellate Tribunal (NCLAT).

On August 14, 2024, NCLAT placed a temporary halt on insolvency proceedings against CDEL, originally initiated by the National Company Law Tribunal over a plea by IDBI Trusteeship Services Ltd. However, IDBITSL contested this decision, prompting the Supreme Court's intervention. The apex court directed NCLAT to dispose of the pending appeal by February 21, 2025.

Simultaneously, CDEL's regulatory filings indicate ongoing negotiations with IDBITSL for a settlement. This proposal is subject to final approval from both parties and necessary documentation. CDEL's strategy aims to balance legal battles and settlement efforts to protect the company's best interests.

(With inputs from agencies.)