Reliance Retail among three in race for Future Enterprises
Reliance Retail Ventures, the retail arm of Mukesh Ambani-owned Reliance Industries, is among the three companies in the race for acquiring Future Enterprises Ltd (FEL), which is undergoing corporate insolvency resolution process, FEL disclosed in an exchange filing on 12 July 2023.
The other two in the race are Jindal (India) Limited and GBTL Limited. While Jindal (India) Ltd is a manufacturer of metal pipes and tubes, GBTL is a textile manufacturer.
Future Enterprises is going through Corporate Insolvency Resolution Process (CIRP) after the Mumbai bench of the National Company Law Tribunal (NCLT) admitted a plea from one of its operational creditors. Foresight Innovations had moved NCLT against the company after it failed to pay a paltry sum of Rs 1 crore to the former.
Avil Menezes, the Resolution Professional of Future Enterprises Limited, has so far admitted claims of more than Rs 12,265 crore from both secured and unsecured financial creditors.
The RP received claims of Rs 7,015 crore from 22 secured financial creditors, out of which Rs 6,952 crore of claims have been admitted as of 5 June 2023. Unsecured financial creditors have submitted claims of Rs 8,880.50 crore, out of which Rs 5,313.27 crore claims have been admitted.
Centbank Financial Services Ltd has the highest voting percentage of 27.22% in the CoC. Union Bank of India and Axis Trustee Services have 10.97% and 10.92% voting percentages, respectively. Centbank Financial Services Ltd has total admitted claims Rs 3,345 crore, while Axis Trustee Services has admitted claimed Rs 1,341.96 crore.
The RP also received claims of Rs 2.58 crore from employees, of which it has admitted Rs 2.24 crore. Also, it has also received statutory dues of Rs 14.75 crore from the state tax department and GST authorities.
Future Enterprises develops, owns and leases the retail infrastructure for Future group. The company also holds the Group’s investments in subsidiaries and joint ventures including insurance, textile manufacturing, supply chain and logistics. While Future Supply Chains manages the logistics- from warehousing, storage to distribution of raw materials and products, Future Generali- a JV with the globally known Generali Group, offers financial security solutions like savings, insurance and policies to its customers.
Also Read: Future Enterprises to undergo insolvency process after failing to clear Rs 1-cr debt
