Thanks Rick, Mike for the information provided about the Daemon thread. 
It clears some understanding about the significance of these threads.

In my legacy application it performs following operation - 
1. writes data to table under jta transaction boundary (handled by 
Hibernate)
2. scheduled cron job runs in every night to delete old data

Now, the issue which we are facing is the daemon thread is consuming 
100% cpu usage and as result we have to restart our server to get this 
clear out. After the server restart everything becomes normal.

Any pointer what would be causing daemon thread to consumes cpu usage?

Thanks.
Vivek


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