Coffee Day Enterprises faces insolvency resolution application from IDBI Trusteeship

11 Sep 2023 , 11:39 AM

Ares SSG Capital Management, a global alternative investment fund manager, has filed a plea with the Bengaluru bankruptcy tribunal to admit Coffee Day Enterprises to corporate insolvency due to a Rs 228-crore bond default.

The fund has filed the insolvency plea through IDBI Trusteeship.

Coffee Day Enterprises (CDEL) informed the bourses of IDBI Trusteeship’s insolvency application without disclosing the details of the bondholder. CDEL is the holding company for Coffee Day Global, which operates the Café Coffee Day franchise.

Earlier on March 31, 2022, CDEL defaulted on bond payments of Rs 115.37 crore to Credit Opportunities II Pte and Rs 116.55 crore to India Special Situation Scheme, both funds of Ares SSG Capital.

On the basis of an application filed by IndusInd Bank, the National Company Law Tribunal in Bengaluru admitted Coffee Day Global to corporate bankruptcy on July 20. However, the appellate panel suspended the proceedings until the next hearing on September 20.

Reportedly, at least three CDEL lenders sold their debt to various asset reconstruction firms (ARC) following a failed attempt to restructure the company’s debt.

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