Coffee Day Enterprises’ Total Default at Rs 425.38 Crores as on March 2025

On March 31, 2025, Coffee Day Enterprises Ltd. reported a total of Rs 425.38 crore in interest and principal repayment defaults on loans from banks, financial institutions, and unlisted debt securities like NCDs and NCRPS.

"The liquidity crisis is the reason for the delay in debt servicing," stated Coffee Day Enterprises Ltd. (CDEL), which is reducing its obligations through asset resolution, in a regulatory report.

“Due to default in repayment of interest and principal to the lenders, the lenders have sent ‘loan recall’ notices to the Company as well as initiated legal disputes. In view of the loan recall notices, legal disputes and pending one-time settlement with the lenders, the company has not recognized interest from April 2021,” it said.

As of March 31, 2025, CDEL has recorded a Rs 174.83 crore failure on principle payments for loans or revolving facilities such as cash credit from banks or financial institutions.  According to CDEL, it has also failed to pay interest of Rs 5.78 crore on the above. The outstanding amount of default for unlisted debt securities, such as non-convertible debentures (NCDs) and nonconvertible redeemable preference shares (NCRPS), is Rs 200 crore, and there is also a default in interest payments of Rs 44.77 crore on the same.  

In July 2019, CDEL reduced debts by resolving assets following the passing of founder and then-chairman V G Siddhartha. In February this year, the National Company Law Appellate Tribunal (NCLAT) had set aside insolvency proceedings against Coffee Day Enterprises. An interim resolution specialist was appointed to oversee the operations of the indebted company after the Bengaluru bench of the NCLT (National Company Law Tribunal) accepted the appeal submitted by IDBI Trusteeship Services Ltd (IDBITSL) alleging a default of Rs 228.45 crore on August 8, 2024. This was promptly contested before the NCLAT, the appellate body, which on August 14, 2024, halted the insolvency procedures against CDEL that NCLT had started due to IDBITSL's request.

After reaching an agreement with Blackstone Group to sell its technology business park, CDEL stated in March 2020 that it will return Rs 1,644 crore to 13 lenders. The company is also pursuing a legal course to recover over Rs 3,535 crore allegedly siphoned out of the company into Mysore Amalgamated Coffee Estates Ltd (MACEL), a personal firm promoted by its late founder V G Siddhartha.