Coffee Day Enterprises Faces Continued Debt Defaults Amid Legal Challenges

Coffee Day Enterprises Ltd reported a total default of Rs 433.91 crore on loans for the quarter ending June 30, 2024. Struggling with a liquidity crisis, the company has faced 'loan recall' notices and legal disputes from lenders. The ongoing debt woes began after founder V G Siddhartha's death in 2019.

Coffee Day Enterprises Ltd has reported a significant default amounting to Rs 433.91 crore for the quarter that ended on June 30, 2024. The defaults pertain to interest payments and principal repayments on loans from various financial institutions and unlisted debt securities.

According to a regulatory update, CDEL attributed the delays to a liquidity crisis and noted no change in the default amount from previous quarters. The company hasn't recognized interest since April 2021 due to ongoing debt resolution efforts and legal disputes initiated by lenders.

In the aftermath of founder chairman V G Siddhartha’s death in July 2019, CDEL has been grappling with financial instability. In March 2020, the company repaid Rs 1,644 crore to 13 lenders by selling its technology business park to Blackstone Group. Additionally, CDEL is pursuing legal actions to recover Rs 3,535 crore allegedly siphoned out to a personal firm promoted by Siddhartha.