Shares of Coffee Day Enterprise crashed 15% during the trade session on 11 September after IDBI Trusteeship Services filed a default application against the company before the NCLT (National Company Law Tribunal).

The company’s regulatory filing on 8 September said that IDBI Trusteeship Services had filed an application against the company under Section 7 of the Insolvency and Bankruptcy Code for alleged default of Rs 228.45 crore.

The company added that it will take appropriate legal help and will take steps to protect its interests.

On 11 August, the NCLAT (National Company Law Appellate Tribunal) issued an order allowing Coffee Day Global to be admitted to the insolvency process.

The NCLAT during that time noted that it had found a few arguable points that needed clarifications and asked IndusInd Bank to file its response in two weeks.

The matter is set to come up for a hearing on 25 September.

Coffee Day Enterprise owns 495 cafes in 158 cities.

During the quarterly report for the April-June quarter, the company reported a net profit of Rs 21 crore against the net loss of Rs 17 crore it reported in the year-ago quarter.

The revenue from the operations also saw an 18% YoY increase at Rs 247 crore.

The company has also set up 285 CCD Value Express Kiosks and vending machines across workplaces and businesses.

At 3:30 pm, the shares of Coffee Day Enterprise close at Rs 45.30 or 7.80% below its previous close on NSE.