MUMBAI: The curtains are closing on the saga of one-time Raja of Retail, Kishore Biyani’s flagship. The insolvency professional overseeing the bankruptcy proceedings has proposed the liquidation of Future Retail, the bankrupt company that lost most of its key locations after Reliance Retail took over their tenancy.
In a letter to the exchange, Future Retail said after the committee of creditors did not approve the resolution plan from Space Mantra, a platform for construction materials, for Future Retail (FRL), the resolution professional has taken the next step.On November 9, the RP filed an application with the NCLT, Mumbai bench, seeking to start the liquidation process for FRL under Section 33 of the Insolvency and Bankruptcy Code, 2016.
The plan presented by Space Mantra was turned down by the lenders in the vote on September 30, with only 42% support, falling below the necessary 66% for approval. According to regulations of the Insolvency and Bankruptcy Board of India (IBBI), the RP is required to submit an application to the NCLT in accordance with the voting results.
Reliance Retail has total approved claims of Rs 19,400 crore. Space Mantra had offered Rs 550 crore. Most other bidders who submitted binding offers were scrap dealers.