Reliance Retail, led by Mukesh Ambani, is in the running to acquire the company. They've asked for an extension until October 30 to decide on their bid for Future Enterprises.
Debt-laden Future Enterprises might attract a new contender. Jindal (India) has supposedly proposed a debt resolution plan for Future Enterprises within the Insolvency and Bankruptcy Code (IBC) framework. Meanwhile, Mukesh Ambani's Reliance Retail is already competing to acquire the company and recently requested an extension until October 30 to finalize their bid.
Jindal's financial bid remains confidential as it was submitted in a sealed envelope, according to the Economic Times. In July, Future Enterprises announced that it had received resolution plans from Reliance Retail Ventures, Jindal (India) Ltd, and GBTL Ltd, a textile manufacturer owned by Donear Industries. These three entities were identified as potential resolution applicants by Avil Menezes, the resolution professional for Jindal (India), Reliance Retail, and Future Enterprises.
On February 27, the NCLT admitted Future Enterprises for corporate insolvency. The Mumbai bench ordered the firm to undergo the insolvency resolution process, which involves auctioning the company to recover unpaid debts.
Kishore Biyani's Future group company had significant bond-related borrowings, resulting in claims from trusteeship firms. Centbank Financial Services filed the highest claim at Rs 3,344 crore, followed by Axis Trustee Services at Rs 1,341 crore and Vistra ITCL (India) at Rs 210 crore. The resolution professional accepted Rs 12,265 crore in lender claims and Rs 23 crore in fixed deposit holder claims.
In June, Future Enterprises invited Expressions of Interest for its various businesses involved in manufacturing, trading, and leasing retail infrastructure in Maharashtra, Karnataka, and across India. The company operates three manufacturing plants located in Tarapur-Boisar, Mahadevpura, and Anekal, Bengaluru.
In the same month, Future Enterprises Limited (FEL) disclosed that its Interim Resolution Professional (IRP) received employee claims of Rs 2.58 crore, with Rs 2.24 crore admitted. Additionally, statutory dues of Rs 14.75 crore were received from state tax and GST authorities.
The company also stated that the IRP received claims from various creditors, including employees, within 90 days of the Corporate Insolvency Resolution Process (CIRP).
Furthermore, FEL, led by Kishore Biyani, has been facing several payment defaults, including one on the interest of securities amounting to Rs 120 crore. This default covers the period from December 20, 2021, to June 19, 2022. The debentures are secured with a 10.15 percent annual coupon rate.
Earlier this month, FEL failed to pay Rs 1.41 crore in interest on Rs 29 crore of non-convertible debentures. Additionally, four Kishore Biyani-controlled Future Group companies are currently undergoing insolvency proceedings, including Future Retail Ltd, Future Lifestyles Fashion Ltd, and Future Supply Chain Ltd.
