Coffee Day Enterprises Ltd (CDEL), which owns and operates the Cafe Coffee Day chain, on Tuesday settled a case pertaining to violation of disclosure norms with markets regulator Sebi on payment of Rs 7.52 lakh towards settlement charges.
This came after the company approached Sebi, proposing to halt the instant proceedings initiated against it, “without admitting or denying the findings of facts” through a settlement order.
“In view of the acceptance of the settlement terms and the receipt of the settlement amount… the instant adjudication proceedings initiated against the noticee vide SCN … is disposed of,” the Securities and Exchange Board of India (Sebi) said.
The regulator had initiated adjudication proceedings against Coffee Day Enterprises for the alleged violation of provisions of Sebi’s LODR (Listing Obligations and Disclosure Requirements) rules.
Meanwhile, the National Company Law Tribunal (NCLT) last week ordered initiating insolvency proceedings against Coffee Day Enterprises Ltd (CDEL).
The NCLT’s Bengaluru bench on August 8 admitted the plea filed by IDBI Trusteeship Services Ltd (IDBITSL) claiming a default of Rs 228.45 crore and appointed an interim resolution professional to take care of the operation of the debt-ridden company.
CDEL, which also owns and operates a resort, renders consultancy services and is engaged in the sale and purchase of coffee beans, had defaulted in the payment of coupon payments of redeemable non-convertible debentures (NCDs).
The financial creditor had subscribed 1,000 NCDs through private placement and paid Rs 100 crore towards the subscription in March 2019.
(With PTI Inputs)
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