Debt Ridden
NCLT Mumbai bench orders liquidation of Future Retail
This story was originally published at 19:34 IST on 29 July 2024
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--NCLT Mumbai orders liquidation of Future Retail
NEW DELHI – The Mumbai bench of the National Company Law Tribunal today directed the liquidation of debt-ridden Future Retail Ltd. The tribunal said that it was evident that the maximum period of the corporate insolvency resolution process had expired, and the committee-of-creditors of Future Retail had not approved a resolution plan.
The tribunal appointed Sanjay Gupta as the liquidator of the company. The tribunal asked the liquidator to endeavour the sale of Future Retail as a going concern under Regulation 32A clause (e) of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulation, 2016, to maximise the value of the company.
The tribunal noted that last year, the only resolution plan which was considered by the members of the committee-of-creditors was put to vote but failed to secure the requisite voting percentage. In view of the same, members of the committee in a subsequent meeting held in October, decided to liquidate the company, said the tribunal.
In July 2022, the tribunal had allowed Bank of India's petition to initiate corporate insolvency proceedings against Future Retail. Last year, the resolution professional of Future Retail had filed an application before the tribunal for initiation of liquidation under the Insolvency and Bankruptcy Code, 2016.
The resolution professional had said that the resolution plan submitted by Space Mantra Pvt Ltd had not been approved by its committee-of-creditors in September. Space Mantra was the single bidder for Future Retail, offering about 5.50 bln rupees, which was very close to the liquidation value of the company. The amount was only 2.8% of Future Retail's outstanding dues of 197.73 bln rupees to its financial creditors.
Today, shares of Future Retail closed 5.1% lower at 2.40 rupees on the National Stock Exchange. End
Reported by Surya Tripathi
Edited by Aditya Sakorkar
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