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Informist, Tuesday, Sep 24, 2024

 

--NCLT admits Central Bk's IBC plea against Future Corporate Resources

 

NEW DELHI – The Mumbai bench of the National Company Law Tribunal today admitted a petition by Central Bank of India to start insolvency proceedings against Future Corporate Resources Pvt Ltd, a Future Group company. The tribunal appointed Avil Jerome Menezes as the interim resolution professional of the company to carry out the functions as per the Insolvency and Bankruptcy Code, 2016.

 

"In view of the aforesaid findings, this Application being C.P. (IB) 1111/MB/2022 filed under Section 7 of the IBC (Insolvency and Bankruptcy Code) by the Central Bank of India, the FC (financial creditor) for initiating CIRP (Corporate Insolvency Resolution Process) in respect of Future Corporate Resources Private Limited, the Corporate Guarantor/CD, is admitted," the tribunal said in its order. It declared a moratorium against Future Corporate Resources under Section 14 of the Insolvency and Bankruptcy Code, 2016.

 

Future Corporate Resources was the guarantor for Iskrupa Mall Management Company Pvt Ltd, the principal borrower in the case. The bank sanctioned a term loan of 1.50 bln rupees to Iskrupa Mall Management in 2015. The loan facilities were guaranteed by Future Corporate Resources though a deed executed on the same date.

 

In 2020, Iskrupa Mall Management defaulted on repayment of the loan and sought one-time restructuring under the ‘Resolution Framework for COVID-19-Related Stress’ announced by the Reserve Bank of India. In 2021, the bank entered into a one-time restructuring agreement with Iskrupa Mall Management and Future Corporate Resources. But both companies failed to honour their obligations to repay the principal and interest due on Mar 31, 2022, and the loan account was classified as a non-performing asset on Apr 30, 2022.

 

Subsequently, demand notices were sent by the bank to both companies in Jun 2022. However, no payments were made by either. The bank then moved the tribunal to start insolvency proceedings against Future Corporate Resources. As of May 29, 2022, the amount of financial debt claimed to be in default was 723.22 mln rupees, along with interest and other charges.

 

Today, shares of Central Bank of India ended 1.9% lower at 60.41 rupees on the National Stock Exchange.  End

 

Reported by Surya Tripathi

Edited by Rajeev Pai

 

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