The resolution professional (RP) of Future Enterprises has invited expressions of interest (EoIs) from prospective bidders, formally starting the insolvency process of the company.
The last date for submitting EoIs is June 25, while the resolution professional will announce a provisional list on July 5. The last date to submit objections to the list is July 10.
Future Enterprises has a total of 26 financial creditors, including Axis Bank, Bank of Baroda, Bank of India, Bank of Maharashtra, Canara Bank, Central Bank of India, DBS Bank India and Dhanlakshmi Bank. As of May 10, the RP has received claims totallingRs 15,820 crore, of which claims worth Rs 12,266 crore have been admitted and worth Rs 3,554 crore rejected.
Also read: SFURTI Scheme: What is govt’s MSME cluster development scheme and how it benefits artisans
A total of 121 operational creditors, including Axis Trustee Services, Axis Bank, BSE and NSE, Hotel Marine Plaza and Bella Casa Fashion and Retail, have submitted claims of Rs 104 crore as of May 10. Of that, Rs 22.73 crore has been admitted, Rs 6.16 crore rejected, while claims totalling Rs 75.43 crore are under verification.
Future Enterprises’ standalone revenue from operations was Rs 1,513 crore for FY22, and it had 1,388 employees as of February 27, 2023 (the date of commencement of insolvency proceedings). The company has three major manufacturing facilities in Maharashtra and Karnataka.
Earlier this year, the National Company Law Tribunal’s Mumbai bench admitted an insolvency petition filed by Foresight Innovation, an operational creditor, after Future Enterprises failed to settle certain debt. The bankruptcy court appointed Jitender Kothari as the RP for the corporate insolvency resolution process.
Other operational creditors, including Retail Detailz India, also moved the bankruptcy court against Future Enterprises. In February, Future Enterprises defaulted on the payment of interest of ₹12.75 crore on two NCDs, the latest in a series of defaults.
A number of Future Group companies, including Future Retail and Future Supply Chain Solutions, were admitted for insolvency proceedings earlier.
Also read: DGFT Amnesty Scheme: What is it? How exporters can apply for it online? Check latest procedure
In 2020, Future Group had signed a deal to sell its retail, logistics and warehousing businesses to Reliance Retail, a subsidiary of Reliance Industries, for Rs 24,713 crore.
However, the deal became entangled in legal tussles after US e-commerce major Amazon opposed it, citing a 2019 agreement with Future Group. Amazon, which had acquired a 49% stake in Future Coupons, the promoter entity of Future Retail, for about Rs 1,500 crore, alleged violation of certain terms of the deal signed in 2019.