Future Group’s Kishore Biyani has reportedly resolved debts worth Rs 571 crore with Bansi Mall Management Company creditors, settling 83 per cent of the total dues through a one-time payment of Rs 476 crore.
According to media reports, the settlement, involving the iconic Sobo Central Mall in Mumbai’s Haji Ali, was facilitated by real estate developer K Raheja Corp. Sobo Central, formerly Crossroads, was India’s first mall when it opened in the late 1990s.
Biyani’s offer followed a previous bid of Rs 475 crore from the Runwal Group, which was approved by creditors led by Canara Bank. K Raheja Corp.’s real estate arm completed the acquisition, paying Rs 28.56 crore in stamp duty.
The mall, inaugurated in 1999, currently hosts a single McDonald’s outlet. However, it faced challenges from COVID-19, new retail developments, and Future Group companies’ financial issues.
Bansi Mall Management’s default led to creditor action under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.
Last year, Jindal (India) emerged as the sole bidder for Biyani’s Future Enterprises Limited, amidst the latter’s insolvency proceedings initiated by creditors due to loan defaults in 2022. Future Retail owes creditors a total of Rs 12,265 crore, with Centbank Financial Services leading with a claim of Rs 3,344 crore.
