US-based technology consulting company Palguntech, is urging the Committee of Creditors (CoC) of Future Retail (FRL) to reconsider its bid placed in May, following the rejection of SpaceMantra’s resolution application.
In an email sent earlier this month to FRL’s resolution professional (RP), Palguntech officials requested a meeting with the CoC to present its case. The company also emphasized that its bid should be considered to prevent the liquidation of FRL, as there are no other bidders for the entire assets of FRL, according to people familiar with the matter.
However, they declined to divulge the bid amount citing it as “confidential”. When contacted, Palguntech officials declined to comment.
Palguntech, backed by US-based technology entrepreneurs, was looking to foray into the Indian retail market through the acquisition of FRL’s assets. Currently, the company specializes in technology consulting and serves marquee clients in the US.
In April, Palguntech had submitted its resolution plan under option-1, which included bidding for FRL and its subsidiaries.
Palguntech’s proposal came after FRL’s CoC rejected a bid submitted by SpaceMantra after it failed to get the requisite number of votes in favour through the e-voting process. This came after the e-voting for the process ended on September 30.
The timeline for the bidding process, which was extended for the third time, also ended on September 30.
SpaceMantra and certain lenders had requested a re-evaluation of bidding process and an extension of the deadline. This was to avoid liquidation of FRL, which would deplete the value of its assets and push it down further below the fair price offered through the bidding process.
SpaceMantra, a provider of an online marketplace for the construction and interior industry, had offered about Rs 550 crore through the bidding process, which many lenders believed was a “fair price”. This was close to the fair value of Rs 450 crore arrived at independent valuers.
SpaceMantra, an online marketplace provider for the construction and interior industry, had offered approximately Rs 550 crore through the bidding process, which many lenders considered a “fair price.” This was close to the fair value of Rs 450 crore determined by independent valuers.
Bank of New York Mellon has the highest voting share of 21.18% in FRL’s CoC, followed by Union Bank of India at 9.17% and Bank of Baroda at 8.95%.
Bank of New York Mellon holds the highest voting share of 21.18% in FRL’s CoC, followed by Union Bank of India at 9.17% and Bank of Baroda at 8.95%.
Earlier on September 25, Kishore Biyani, the erstwhile promoter of FRL, had moved the Bombay High Court against a forensic audit process of the company. In August of the same year, Bank of India had asked Kishore Biyani and his brother Rakesh Biyani to respond to findings from the forensic audit report conducted by forensic auditor BDO.
The forensic auditor had submitted its report on August 9, 2023, and Bank of India had sought representation and submissions from the company regarding the credit facilities utilized by Biyani.