Cafe Coffee Day, one of India's most famous coffee houses, is in financial dire straits as Ares SSF Capital Management has filed an application with the Bengaluru bankruptcy tribunal requesting starting corporate insolvency proceedings against the company over Rs 228 crore bond default.
Coffee Day Enterprises, which owns the brand, has informed the stock exchange about the insolvency application filed by IDBI Trusteeship.
On March 31, 2022, the company defaulted on Rs 115.37 crore and Rs 116.55 crore payments to funds managed by ARES.
Coffee Day Global was admitted for corporate insolvency on July 20 over an IndusInd Bank application.
The appellate tribunal stayed the process until the next hearing, which is on September 20.
The company is taking legal steps to protect its interests.
