Future Retail, once the prized asset of Kishore Biyani’s Future Group, is now on the verge of liquidation after failing to attract a viable buyer amid its financial struggles. The Committee of Creditors (CoC) rejected the sole resolution plan submitted by Space Mantra, prompting the company’s resolution professional to initiate the liquidation process for Future Retail (FRL).
Last month, FRL’s Rs 550 crore bid from Space Mantra was unable to secure enough votes in the CoC’s e-voting process, leading to the company’s current dire situation. The National Company Law Tribunal (NCLT) initially granted multiple extensions for FRL to complete its corporate insolvency resolution process (CIRP), but after the final deadline of September 30, 2023, the company now faces the risk of liquidation.
Under the Insolvency & Bankruptcy Code (IBC), the CIRP must be completed within 330 days, including any extension or litigation period. FRL’s insolvency proceedings began on July 20, 2022, but the company has struggled to attract viable resolution plans despite its efforts to divide its assets into clusters and solicit fresh bids.
FRL, which operates retail formats like Big Bazaar and Easyday, has accumulated a substantial debt of around Rs 30,000 crore. The company was part of a larger deal announced in August 2020, where 19 Future Group companies, including FRL, were set to be transferred to Reliance Retail. However, this deal was rejected by lenders amid a legal dispute with Amazon.
The liquidation of Future Retail represents a significant downfall for a company that was once a major player in India’s retail landscape. Despite its efforts to attract buyers and restructure its debts, the company is now facing a dire financial situation with the possibility of liquidation looming large.
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