The resolution professional (RP) of Future Retail Ltd (FRL) filed for liquidation, marking an inglorious end for the company that once led India’s retail revolution.
On 30 September, creditors had rejected a resolution plan submitted by sole bidder Space Mantra Pvt. Ltd.
A Press Trust of India report at the time pegged the bid at ₹550 crore, adding it was close to the company’s liquidation value.
“…the resolution professional has filed an application before the National Company Law Tribunal (NCLT), Mumbai bench, for initiation of liquidation of FRL under Section 33 of the Insolvency and Bankruptcy Code, 2016 on 9 November,” the company said in a statement to the stock exchanges.
State-owned Bank of India had on 14 April 2022, initiated insolvency proceedings against FRL for non-payment of dues under the terms of a framework agreement between the company and the bank.
However, it took more than two months for this petition to be admitted.
Following its admission, Vijay Kumar Iyer was appointed as the RP.
FRL owes its creditors led by Bank of India over ₹19,000 crore, according to claims submitted and approved under the insolvency process up to 24 August.
Lenders include Bank of New York Mellon, Bank of Baroda, Union Bank of India, and Central Bank of India.
The final list of prospective resolution applicants included Reliance Retail, April Moon Retail (a joint venture firm of Adani Airport Holdings and the promoters of the Flamingo Group), Jindal Power, JC Flower Asset Management Co. and UV Stressed Asset Management. These entities, along with others, were also a part of the list of prospective resolution applicants announced in November last year.
Lenders first set 20 October 2022 as the date for submitting bids and extended it later to 3 November 2022, and further to 15 December.
Despite multiple attempts, the RP failed to receive any suitors for the debt-laden company, prompting Friday’s filing.
Meanwhile, Future Group founder Kishore Biyani has filed a petition before the Bombay high court challenging Bank of India’s direction to BDO to conduct a forensic audit of FRL.
Earlier, Bank of India has asked Biyani and his brother Rakesh Biyani to respond to findings made in the forensic audit report by BDO.