NCLT Grants More Time To Conclude Future Retail Insolvency Resolution

India’s National Company Law Tribunal (NCLT) allowed the exclusion of 90 days from Future Retail Ltd.’s corporate insolvency resolution process (CIRP) period.

The development came after the bankrupt retailer’s resolution professional filed an application with the NCLT, seeking exclusion of 90 days from the company’s CIRP period.

The NCLT heard the matter on 13 April and granted the exclusion of 90 days from the company’s CIRP, Future Retail’s Company Secretary Pratiksha Salecha said in a stock exchange announcement. Consequently, the deadline for completing the company’s CIRP has been extended until 15 July.

A total of 49 suitors, including Reliance Retail Ventures Ltd. and Jindal Power Ltd., have shown interest in acquiring the distressed company or its assets.

Resolution Professional Vijaykumar Iyer had sought fresh expression of interest for the company by giving two options after the previous attempt yielded no resolution plans from suitors.

Future Retail, which failed to get any bids by the submission deadline in February despite initial interest from several suitors, was admitted into an insolvency resolution by the NCLT in July 2022.

The insolvency resolution process was started against Future Retail following a petition by the company’s financial creditor Bank of India over an alleged default amount of 1,441.62 crore rupees ($176 million).

(Note: $1 = 81.8130 Indian rupees)

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