**CDEL Settles ₹205 Crore Debt with IDBI Trusteeship: A Path to Recovery**
Coffee Day Enterprises Ltd (CDEL) has reached a settlement of ₹205 crore with IDBI Trusteeship, following a default on coupon payments between September 2019 and June 2020. The company’s board approved this agreement on March 19, 2025, after IDBI Trusteeship initiated insolvency proceedings against CDEL, which were admitted by the National Company Law Tribunal (NCLT) in August 2024.
### Settlement Breakdown
– **Initial Payment**: An upfront payment of ₹80 crore will be made upon signing the agreement, which includes ₹55 crore from the sale of pledged shares.
– **Subsequent Payments**:
– ₹75 crore is due within one year.
– A final tranche of ₹50 crore is contingent on CDEL achieving specific earnings milestones over the next three years.
The settlement includes proceeds from the sale of 12.41% of Coffee Day Global Limited’s shares, which were sold for ₹55 crore. The agreement is expected to be finalized with Ares Management later this week.
### Impact on Stock Performance
Following the announcement of the settlement, Coffee Day Enterprises Ltd’s stock surged by 5%, closing at ₹24.54 on the BSE. If CDEL fails to meet the agreed parameters, the final payment will be forfeited, resulting in a total payment of ₹155 crore to Ares SSG.
### Conclusion
This settlement marks a significant step towards resolving CDEL’s financial challenges and ending the insolvency proceedings initiated by IDBI Trusteeship. Will this agreement pave the way for a stronger financial future for Coffee Day Enterprises?
**FAQ: What led to the insolvency proceedings against Coffee Day Enterprises?**
CDEL faced insolvency proceedings after defaulting on a ₹228 crore loan, prompting IDBI Trusteeship to take legal action.
