Coffee Day Enterprises Faces Financial Turmoil Amidst Major Loan Defaults

Coffee Day Enterprises Ltd has reported a severe default totaling Rs 425.38 crore in loan payments, triggering legal disputes. After the death of its founder V G Siddhartha, CDEL has struggled with debt resolution. Recent decisions by NCLT and NCLAT have spotlighted the firm's financial challenges and legal entanglements.

Devdiscourse News Desk | New Delhi | Updated: 07-04-2025 19:36 IST | Created: 07-04-2025 19:36 IST

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Coffee Day Enterprises Ltd (CDEL) is grappling with significant financial distress, reporting a default of Rs 425.38 crore in loan repayments as of March 31, 2025.

The company attributes the delay in fulfilling its financial obligations to a liquidity crisis, which has prompted lenders to issue 'loan recall' notices and initiate legal proceedings against it.

Following the death of founder V G Siddhartha in 2019, CDEL has been involved in asset resolution to manage its debt load. Despite these efforts, the firm is facing ongoing legal disputes, including challenges to the National Company Law Tribunal's decisions.

(With inputs from agencies.)