NCLT orders liquidation of Biyani-led Future Retail amid no resolution
The retail company owes over Rs 17,000 crore to both its financial and operational creditors. | Photo: Shutterstock
The National Company Law Tribunal on Monday approved the liquidation of Kishore Biyani-led Future Retail as the maximum period of the bankruptcy process (CIRP) has expired and lenders have yet to approve a resolution plan.
The Mumbai court of the NCLT has appointed Sanjay Gupta as liquidator in the case.
The bench, headed by Anil Raj Chellan and Kuldip Kumar Kareer, said in its order: “Looking at the application and the averments made therein, it is clear that the maximum period of CIRP has expired and the CoC has not approved any resolution plan.
“We believe that this is a suitable case for liquidation. Therefore, we hereby order the liquidation of the Corporate Debtor.”
The decision comes after resolution expert Vijaykumar V Iyer failed to find a resolution candidate who could revive the insolvent company.
In November 2023, Future Retail’s resolution professional filed a petition with NCLT Mumbai, seeking liquidation of the debt-ridden company after the lenders opted for it.
The application was filed based on the decision of the Committee of Creditors (CoC) of October 2023.
The CoC, led by state-owned Bank of India, had filed a bankruptcy petition against the company in April 2022 after the company failed to repay its debt.
The retail company owes over Rs 17,000 crore to both its financial and operational creditors. Subsequently, after three months, the NCLT declared the company insolvent in July 2022.
Despite initial interest, none of the applicants submitted a definitive solution plan.
Space Mantra, which was not in the initial list of bidders, ended up as the sole applicant for the resolution with a bid of Rs 550-crore. The plan was rejected by the lenders, following which the resolution professional approached the court to wind up the company.
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First print: Jul 29, 2024 | 11:42 PM IST