Coffee Day Enterprises Ltd (CDEL) is once again staring down the barrel of mounting debt, reporting a total default of ₹425.38 crore as of March 31, 2025. This includes missed payments on bank loans, institutional borrowings, and unlisted instruments such as non-convertible debentures (NCDs) and redeemable preference shares.
The company attributed the defaults to an ongoing liquidity squeeze. In a regulatory filing, it acknowledged, “Repayments have been delayed due to a severe cash crunch,” adding that lenders have now issued formal loan recall notices and initiated legal action. With these disputes unresolved, and a one-time settlement still hanging in the balance, CDEL also noted that it has stopped recognising any interest liabilities since April 2021.
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Of the total default, ₹174.83 crore is due on principal payments to banks and financial institutions, while an additional ₹5.78 crore remains unpaid as interest. Meanwhile, defaults on unlisted debt instruments amount to ₹200 crore in principal and ₹44.77 crore in interest.
This is not the company’s first financial standoff. Following the tragic death of its founder V.G. Siddhartha in 2019, Coffee Day had begun chipping away at its debt pile, selling off assets to stay afloat. A landmark deal with Blackstone in 2020, involving the sale of a tech park, helped it pay back ₹1,644 crore to 13 lenders.
But troubles have persisted. In August 2024, the National Company Law Tribunal (NCLT) admitted a plea from IDBI Trusteeship Services over a ₹228.45 crore claim, triggering insolvency proceedings. CDEL quickly contested the move, and just six days later, the National Company Law Appellate Tribunal (NCLAT) issued a stay on those proceedings.
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At the same time, the company continues to pursue legal avenues to recover an estimated ₹3,535 crore allegedly diverted to Mysore Amalgamated Coffee Estates Ltd (MACEL), a private entity run by Siddhartha. That case remains unresolved.
With no immediate resolution in sight, CDEL’s financial strain shows little sign of easing. Its survival now hinges on the success of pending settlements, asset monetisation efforts, and legal recoveries — all under the shadow of a business empire once seen as one of India’s great entrepreneurial stories.