Reliance, Adani, Others Show Interest In Bankruptcy-hit Future Retail Resolution Plan
Nevember 14, 2022: Reliance Industries, Adani Group and 13 others have submitted expressions of interest in the resolution process of bankruptcy-hit Future Retail.
As many as 15 companies, including Mukesh Ambani‘s Reliance and Gautam Adani‘s Adani Group, have submitted Expressions of Interest (EOI) for Future Retail – Kishor Biyani‘s bankruptcy proceedings are underway, reported the Economic Times.
Along with the EoI, Reliance Industries Limited (RIL) had also sent a notice to the Resolution Professional claiming that the Future Group entity owed Rs. 5,300 crore in debt.
Other organizations that have submitted expressions of interest include DS Group, Dickey Alternative Investment Trust, SNVK Hospitality, Capri Global, Bee Right Real Estate-Icart Fintech Consortium, WHSmith Travel, United Biotech, Bommidala Enterprises, Nalwa Steel & Power, Gordon & Payard.
UV Multiple Asset Investment Trust, a consortium led by Shalimar Corporation and Bhumi Reddy Gari Mohan Reddy.
Adani Airport Holding Ltd and Flamingo Group formed a joint venture, April Moon Retail, which submitted the EoI, the report added. According to the report, the Future Retail RP said, interested candidates will have to submit a resolution plan by the binding date of December.
Dues to RIL After Future Group failed to make lease payments to RIL in 2021 it became the lessee for 950 retail locations that were sublet to Future to operate its stores.
Future also owes RIL for inventory supply and working capital loan in FY21 and FY22. Out of the arrears mentioned above, only rent and inventory amounting to Rs. 4,000 crores.
Quoting an unnamed official involved in the proceedings, the report added that RIL is one of Future Retail’s unsecured creditors and therefore claims the amount in the interim resolution plan.
Notably, RIL scrapped plans to acquire Future Retail after the deal was challenged by Future’s secured creditors such as banks and financial institutions as a result of legal difficulties raised by FRL holding company Amazon.
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