US-based technology consulting company Palguntech has filed a plea in the bankruptcy court seeking “critical information” on Future Retail (FRL) to enable it to place a bid for the debt-laden firm.
The company, backed by US-based technology entrepreneurs, also wants the National Company Law Tribunal (NCLT) to keep in abeyance the liquidation application filed by FRL’s resolution professional (RP) on October 10. The RP’s move had come after the plan submitted by sole bidder SpaceMantra was rejected by the Committee of Creditors (CoC).
Palguntech, which had earlier placed a bid for FRL, wants to avoid liquidation of the firm.
In its interlocutory application before the NCLT’s Mumbai bench on Wednesday, it said, “Due to lack of critical information, the applicant was constrained to submit a resolution plan without a financial proposal. Consequently, the CoC did not consider the applicant’s resolution plan.”
It also accused the RP of disabling access to the data site after it raised a query. Since material and critical data was not shared by the RP, it was not possible for Palguntech to determine a price for FRL, it said.
Palguntech needs details of the inventory in the 835 stores of which the Reliance group had taken possession after terminating their lease agreements. It said details of this inventory and its valuation were missing from the data site. It also alleged that there “were no attempts” by the RP to retrieve these stores.
Palguntech has sought non-objection certificates given by Future Enterprises’ lenders to sell off-store infra-assets worth `3,559 crore to FRL, and the Singapore International Arbitration Centre order staying FRL’s sale of any assets to Reliance group, among others.
It has sought an order directing the RP to share the information and provide access to the data room.
On November 13, Palguntech had asked FRL’s RP to pause the initiation of the liquidation process for two weeks to enable it move the bankruptcy court for a stay. It also asked the RP to consider its bid placed in May, which was rejected as it was not supported by a financial proposal.
Palguntech had submitted its resolution plan under option-1, which included bidding for FRL and its subsidiaries. The firm believes liquidation would deplete FRL’s value and bring it “much below” the fair price offered through the bidding process. SpaceMantra and certain other lenders had also sought a relook at the bidding process and a further extension of the deadline.
In July 2022, NCLT admitted an insolvency petition filed by Bank of India against Future Retail and appointed Vijay Kumar V Iyer as RP.