Corporate Insolvency resolution process

Presently, the FRL is going through the Corporate Insolvency Resolution Process (CIRP), leading the bankrupt enterprise to be discharged to the successful applicant. The deadline for submission of the final resolution plan has been extended to 15 December. As of now claims worth Rs 21, 432 crore from financial creditors have been received by the CIRP. Meanwhile operational creditors have submitted claims worth Rs 2,464 crore, revealed official documents

The last date to submit the expressions of intertest (EoIs) for Future Retail Limited (FRL) for prospective buyers has been extended from its original deadline of 20 October to 3 November. The date has been pushed further almost by two weeks. 

Presently, the FRL is going through the Corporate Insolvency Resolution Process (CIRP), leading the bankrupt enterprise to be discharged to the successful applicant.

After the submission of bids by the prospective resolution applicants (PRAs) for FRL by 3 November, a final list of PRAs will be released on 20 November. Whereas the deadline for submission of the final resolution plan has been extended to 15 December. 

As per an announcement, it has been clarified that the EOIs submitted by all interested prospective resolution applicants before corrigendum and Modified IEOI shall only be considered in the ongoing corporate insolvency resolution process of FRL. Resubmission is not required for the same. 

The PRAs having minimum tangible net worth of Rs 100 crore along with minimum assets under management (AUM)/committed funds available for investment of Rs 250 crore, is CIRP’s requirement

As of now claims worth Rs 21, 432 crore from financial creditors have been received by the CIRP. Meanwhile operational creditors have submitted claims worth Rs 2,464 crore, revealed official documents.

The resolution professionals appointed for the purpose too received claims worth Rs 55 crore from workmen/ employees against their dues. The FRL presently has access to 302 leased retail stores spread across 23 states and Union territories. It consists of 30 large format stores including Big Bazaar and FBB stores and 272 small format stores, disclosed the EOI invitation document.

On 20 July this year, accepting a plea filed by Bank of India, the Mumbai bench of the National Company Law Tribunal (NCLT) had ordered directions to initiate CIRP against FRL. Section 12 (1) of the Insolvency and Bankruptcy Code (IBC) mandates a CIRP to be completed within a tenure of 180 days from the date of admission of the application.

However, the NCLT may under the request of the RP, extend the duration by another 90 days. It should be compulsorily be completed within 330 days, considering any extension and the time taken in legal proceedings too.

Operating in retail, wholesale, logistics and warehousing segments, FRL was part of the 19 group companies. It was supposed to be transferred to Reliance Retail as part of a Rs 24,713-crore deal announced in August 2020, however the deal fell through.