Coffee Day Enterprises Secures Major Debt Settlement with Axis Bank

Coffee Day Enterprises, owner of Cafe Coffee Day, has secured a Rs 70 crore one-time settlement with Axis Bank to resolve its financial distress. The company plans to fulfill this settlement by September 2026. Financial challenges followed the death of its founder, VG Siddhartha, including significant debts and alleged fund misappropriations.

Coffee Day Enterprises, the parent firm of Cafe Coffee Day, is poised to resolve its financial obligations to Axis Bank following the approval of a Rs 70 crore one-time settlement.

The private sector lender has allowed Coffee Day Enterprises Ltd (CDEL) until September 30, 2026, to clear the debt, marking a significant step in the company's ongoing efforts to stabilize its finances. The burden of financial woes intensified after the death of its founder, VG Siddhartha, and allegations of substantial fund diversion into Mysore Amalgamated Coffee Estates Limited, a firm promoted by Siddhartha.

By June 2025, the company's indebtedness, both short-term and long-term, amounted to Rs 372.52 crore. Notably, the National Company Law Appellate Tribunal (NCLAT) previously annulled insolvency proceedings against CDEL, reflecting a series of strategic maneuvers aimed at financial recovery. The company's stock saw positive movement, closing at Rs 37.46.

(With inputs from agencies.)