Kishore Biyani-led firm faces liquidation after failing to secure resolution plan
According to a report by PTI, the National Company Law Tribunal (NCLT) has ordered the liquidation of Future Retail, led by Kishore Biyani, following the expiration of the maximum period allotted for the corporate insolvency resolution process (CIRP) without an approved resolution plan. The Mumbai bench of NCLT, comprising Anil Raj Chellan and Kuldip Kumar Kareer, appointed Sanjay Gupta as the liquidator.
In its ruling, the tribunal stated, “Looking at the application and averments made therein, it is evident that the maximum period of the CIRP has expired and no Resolution Plan has been approved by the CoC. We are of the considered opinion that this is a fit case for liquidation. Therefore, we hereby order the liquidation of the Corporate Debtor,” PTI reported.
This decision follows the inability of resolution professional Vijaykumar V Iyer to secure any viable turnaround applicants for the insolvent company, PTI noted. In November 2023, Iyer sought the liquidation of Future Retail after the Committee of Creditors (CoC) opted for this course of action in October 2023. The CoC, led by Bank of India, initiated insolvency proceedings against the company in April 2022 due to its failure to repay debts.
Future Retail owes over Rs 17,000 crore to its financial and operational creditors. Despite initial interest from potential bidders, no final resolution plans were submitted. Space Mantra, which was not initially among the bidders, emerged as the sole applicant with a Rs 550 crore bid. However, this plan was rejected by the lenders, prompting the resolution professional to seek liquidation from the tribunal, PTI reported.
