Reliance, Adani back out of final bidding for Future Retail
Future Retail’s (FRL) insolvency resolution saw only six bidders coming forward, out of four dozen potential suitors. The applications were received in response to the request for resolution plans, under the Corporate Insolvency Resolution Process.
Large corporates, including Reliance Industries and Adani Group had reportedly backed out from submitting resolution plans. The deadline to submit resolution plans was May 15.
As per the report, the highest bid is from Space Mantra, while five other companies have placed their bid for parts of the company. These companies are Pinnacle Air, Palgun Tech LLC, Lehar Solutions, Goodwill Furniture and Sarvabhishta e-waste management.
While the earlier deadline was April 16, last month Future Retail received approval from the bankruptcy court to extend the date to complete its resolution process by another 90 days to July 15.
The company said in a stock exchange update that the Mumbai bench of the National Company Law Tribunal (NCLT) granted the exclusion of 90 days from the Corporate Insolvency Resolution Process.
Future Retail had under its belt famous brands like Big Bazaar, Easyday, and Foodhall and operated multiple retail formats in both the hypermarket supermarket and home segments. Future Retail at its peak was operating more than 1,500 outlets in nearly 430 cities.
The Corporate Insolvency Resolution Process (CIRP) was initiated against FRL by its lender Bank of India following loan defaults. Under the Insolvency & Bankruptcy Code, EoI was invited from prospective bidders on October 4, 2022.
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