Business News

Six companies are bidding for ailing Future Retail, including scrap dealers.

Six companies, mostly scrap dealers, submitted firm resolution plans for Future Retail on Tuesday evening, while Reliance Industries and Adani Group refrained from making offers, said two people aware of the development.

An Adani Group entity, April Moon Retail, and Reliance had initially responded to invitations for expressions of interest (EoI) for the insolvent retailer.

Space Mantra Pvt Ltd, Pinnacle Air Private Ltd, Palguntech LLC, Lehar Solutions, Goodwill Furniture and Sarvabhishta E Waste Management Pvt Ltd are the six companies that submitted firm resolution plans for Future Retail, one of the persons cited above said.

Tuesday was the last date for resolution applicants to submit firm bids for Kishore Biyani’s company, which went bankrupt after a deal with Reliance Industries collapsed in April 2022.

The resolution professional, Vijay Kumar Iyer backed by Deloitte India, had received 49 EoIs. However, most applicants that responded to EoIs were scrap dealers.

Iyer has admitted Rs 17,511 crore in claims from financial creditors. “But it is unlikely that they will receive even 5% of the dues,” said one of the lenders.

The resolution professional has yet not opened the plans received from these six bidders, the people said.

Future Enterprises, Future Lifestyle Fashions Ltd and Future Supply Chain are among the Future Group companies admitted for corporate insolvency over the past one year.

Trouble at the Future group started with the nationwide lockdown in March 2020. Most of the malls where Future stores were located remained shut.

Subsequently, it failed to clinch a Rs 24,713-crore deal with Reliance Industries to sell its retail and wholesale business in a slump sale after secured lenders voted against the scheme of arrangement.

Lenders said they did not receive any clarity on how much money they would get from Reliance after it took possession of more than 900 large-format Future Retail stores. Reliance took over these stores in a phased manner, beginning 2022, due to non-payment of rentals by Future Group.

Iyer has admitted Rs 4,109 crore in claims from offshore bondholders, constituting 23.4% of voting rights. Bank of New York Mellon, the trustee of the offshore bondholders, has filed the claim at their behest.

Among others, Bank of Baroda’s verified claim is Rs 2,143 crore, equating to 12.2% of voting rights. Union Bank of India has an exposure of Rs 1,894 crore, equating to 10.8% of voting rights.



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