Future Retail Resolution Professional Pegs $1.80 Bln Loss To Creditors

Future Retail Ltd. said its resolution professional (RP) quantified a potential loss of 14,809.44 crore rupees ($1.80 billion) to the bankrupt company’s creditors.

The distressed Indian retailer’s RP has filed an application before the Mumbai bench of the National Company Law Tribunal, (NCLT) against the current and former directors of the company, Future Retail’s Company Secretary Pratiksha Salecha said in a statement.

The RP, who filed an application under Section 66(2) and Section 67 read with Section 60(5) of the Insolvency & Bankruptcy Code, has sought direction against the respondents to contribute such amount to the company, it added.

Future Retail was admitted into an insolvency resolution by the NCLT in July 2022 following a petition by the company’s financial creditor Bank of India over an alleged default amount of 1,441.62 crore rupees.

The company, whose Executive Chairman and Director Kishore Biyani recently resigned, failed to get any bids from by the submission deadline last month despite initial interest from several suitors.

In December 2022, Future Retail’s Resolution Professional Vijaykumar Iyer said that a total of 13 suitors, including Capri Global Holdings Private Ltd., Reliance Retail Ventures Ltd. and Dharampal Satyapal Ltd. showed interest for the retailer.

(Note: $1 = 82.0210 Indian rupees)

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