Bankruptcy Court Orders Future Retail Liquidation
The assets of the company will now be sold to settle debts.
(Source: Tingey Injury Law Firm/ Unsplash)
On Monday, the National Company Law Tribunal in Mumbai ordered the liquidation of Kishore Biyani-led Future Retail Ltd. The decision comes after a prolonged insolvency process. The assets of the company will now be sold to settle debts.
Bank of India, leading the creditors, had filed for insolvency in April 2022.
The Resolution Professional Vijaykumar Iyer, filed for liquidation based on a resolution passed by the Committee of Creditors on Oct. 26, 2023. Initially, the company invited expressions of interest for resolution plans, receiving 13 applications. Despite extending the deadline, no satisfactory resolution plans were submitted by February 2023.
A second round of expression of interest resulted in 49 submissions. Although six resolution plans were received, only three were considered viable. The committee decided to liquidate the company after one of the plans failed to secure the required vote.
In a subsequent meeting on Oct. 26, 2023, the committee approved the liquidation process, including the potential sale of Future Retail as a going concern. A joint lenders' meeting on Nov. 9, 2023, recommended Sanjay Gupta as the liquidator, with his consent recorded on Dec. 13, 2023.
The liquidation process will now proceed with the sale of the company's assets to address outstanding debts.
