Coffee Day Enterprises stock tanks 15% on Rs 228 crore default allegation

Shares of Coffee Day Enterprises crashed 15 percent on September 11. The shares fell to a low of Rs 47.45 on the NSE in the morning trade, after IDBI Trusteeship Services filed a default application against Coffee Day before the National Company Law Tribunal.

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In a September 8, regulatory filing, Coffee Day Enterprises said that IDBI Trusteeship Services filed an application against Coffee Day under Section 7 of the Insolvency and Bankruptcy Code, for alleged default of Rs 228.45 crore. In the filing, Coffee Day said that it is seeking appropriate legal advice and will take all appropriate steps to protect its interest in the said matter.

On August 11, the National Company Law Appellate Tribunal (NCLAT) had previously stayed an order allowing Coffee Day Global to be admitted to the insolvency process. The NCLAT at that time noted that it had found certain arguable points that needed clarification and asked IndusInd Bank to file its response in two weeks.