Coffee Day Enterprises Ltd (CDEL), the parent company behind Café Coffee Day, has reported a total default of ₹425.38 crore as of March 31, 2025. The company’s repayment failures include both interest and principal amounts on loans from banks, financial institutions, and unlisted debt instruments such as non-convertible debentures (NCDs) and redeemable preference shares (NCRPS).
In its regulatory filing, the company attributed the delay in debt servicing to a severe “liquidity crisis.” The default includes ₹174.83 crore in principal payments and ₹5.78 crore in interest for revolving credit facilities. Furthermore, it has failed to service ₹44.77 crore in interest payments on ₹200 crore worth of NCDs and NCRPS.
Amid mounting financial stress, Coffee Day is pursuing a strategy of asset resolution, although lenders have already sent loan recall notices and filed legal suits over non-payment.
Legal Labyrinth: NCLT and NCLAT Step In
The default saga intensified in August 2024, when the Bengaluru bench of the National Company Law Tribunal (NCLT) admitted a plea filed by IDBI Trusteeship Services Ltd, claiming a default of ₹228.45 crore. The tribunal appointed an interim resolution professional to oversee operations. However, the company quickly challenged the move.
On August 14, 2024, the National Company Law Appellate Tribunal (NCLAT) issued a stay on the NCLT’s insolvency proceedings, reflecting the complex legal battle playing out between CDEL and its creditors.
This legal tug-of-war follows earlier attempts to settle disputes, including a February 2024 decision by NCLAT to quash initial insolvency proceedings—only for them to be revived months later.
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The Legacy of Siddhartha and Asset Recovery Battles
The company’s financial descent began after the tragic death of its founder and chairman V.G. Siddhartha in July 2019. Post his demise, the company sold assets to reduce liabilities, including a ₹1,644 crore transaction with Blackstone Group in 2020. However, unresolved disputes continue to cast shadows.
Coffee Day is currently seeking legal recourse to recover ₹3,535 crore allegedly siphoned off into Mysore Amalgamated Coffee Estates Ltd (MACEL), a personal venture linked to its late founder. These funds, the company claims, could play a crucial role in turning around its distressed balance sheet.