April 15, 2021
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Initially stuck on a valuation issue, the deal had earlier received no-objection certificates from most of the CDGL’s lenders.
The Tata Group, which was in the advanced stages of talks to acquire Cafe Coffee Day’s (CCD) vending machine business for at least ₹1,000 crore, has put the deal on the back-burner following the latter heading for bankruptcy.
A Tata Group firm, Tata Consumer Products, was in talks to acquire the CCD’s coffee vending business, held through a subsidiary Coffee Day Global Ltd (CGDL).
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“The deal was in the final legs, permissions from CDGL’s lenders were also obtained. However, it has been put on hold as CCD lenders are believed to be moving National Company Law Tribunal under Insolvency and Bankruptcy Code, which would completely complicate the takeover plans. In case of a bankruptcy filing, the deal would have to be re-worked all-over again,” a source close to the development said.