NCLT orders liquidation of Kishore Biyani’s Future Retail Ltd
The company has admitted liabilities of over Rs 28,452 crore. This includes secured financial creditors' claims of about Rs 14,422 crore.
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The National Company Law Tribunal has allowed the liquidation of Kishore Biyani-led Future Retail as the maximum period of the corporate insolvency resolution process (CIRP) has expired with no resolution plan approved by the lenders. The Mumbai bench of NCLT appointed Sanjay Gupta as the liquidator in the matter.
The company has admitted liabilities of over Rs 28,452 crore. This includes secured financial creditors' claims of about Rs 14,422 crore.
The division bench of judicial member Kuldip Kumar Kareer and technical member Anil Raj Chellan while allowing the company’s resolution professional Vijaykumar V. Iyer’s application to admit the company for liquidation in its order stated, “We are of the considered opinion that this is a fit case for liquidation,” said the tribunal.
The order stated, “To maximise the value of the Corporate Debtor, the Liquidator shall endeavour the sale of the Corporate Debtor as a going concern under Regulation 32A clause (e) of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulation, 2016.”
Last year in November, the company’s Resolution Professional informed the stock exchange that the lenders had rejected Space Mantra Pvt Ltd’s resolution plan for Future Retail and hence the lenders have decided to admit the company for liquidation.
