Coffee Day shares down 19% after subsidiary admitted for insolvency by NCLT
Company's Material Subsidiary to Take Legal Action Following Necessary Communication, States Report
New Delhi: The National Company Law Tribunal (NCLT), Bengaluru bench, has admitted an application for insolvency resolution against a subsidiary of Coffee Day Enterprises.
“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,” Coffee Day Enterprises said in a filing.
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However, the material subsidiary is waiting for the written order from the NCLT, Bengaluru bench, the company said.
Further, the material subsidiary has informed the company that it will take the required legal action in this regard, it added.
Meanwhile, Coffee Day Enterprises stock ended down by more than 19 per cent on the BSE to close at Rs 32, down Rs 7.65, on Monday.
