Shillong, July 24: The Bengaluru bench of the National Company Law Tribunal (NCLT) has taken a significant step in the ongoing saga of Coffee Day Enterprises by admitting an application for insolvency resolution against one of its material subsidiaries, Coffee Day Global Limited.
In response to this development, Coffee Day Enterprises promptly made a filing stating, “This is to inform you that the application filed by one of the lenders against the material subsidiary Coffee Day Global Limited before National Company Law Tribunal (NCLT), Bengaluru, has been admitted (oral order) under Section 7 of Insolvency and Bankruptcy Code, 2016 for initiating Corporate Insolvency Resolution Process (CIRP) for Rs 94 crore.”
IANS stated that the situation, however, is still unfolding, as the material subsidiary awaits the written order from the NCLT, Bengaluru bench. The company expressed that it will await the formal written order before proceeding further.
In the wake of this development, the material subsidiary has communicated its intention to take the necessary legal actions to address the situation.
The news of the subsidiary’s insolvency has had a significant impact on Coffee Day Enterprises’ stock. On Monday, the company’s stock witnessed a sharp decline, plummeting more than 19 per cent on the BSE, with the closing price at Rs 32, down Rs 7.65.
As the situation progresses, the future of Coffee Day Global Limited and its potential implications on Coffee Day Enterprises remain subjects of concern and interest for stakeholders.