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Financial creditors to Future Retail place claims worth Rs 21,000 cr



Future Retail has received claims of Rs 21,057 crore from 33 financial creditors, according to data released by the company that is under the corporate insolvency resolution process.


Of the total claims received, an amount of Rs 17,511.69 crore has been verified by the interim resolution professional (IRP). Claims worth Rs 3,546 crore have not yet been verified, according to the company’s website.


US-based Bank of New York Mellon, a financial creditor, has claimed Rs 4,669 crore, of which Rs 4,109 has been verified.


State Bank of India, Union Bank of India, Bank of Baroda, Central Bank of India, Indian Bank, Punjab National Bank, UCO Bank, Indian Overseas Bank—all state-owned lenders—and a few others have claimed over Rs 12,755 crore. That amount is almost 60 per cent of the claims Future Retail has received from financial creditors.


Private sector lenders Axis Bank, IndusInd Bank, IDFC First Bank, and Yes Bank have claimed Rs 464.46 crore, Rs 357.67 crore, Rs 220.55 crore, and Rs 148.70 crore respectively.


Axis Trustee Services Ltd has claimed Rs 1,266.28 crore, but the entire amount is unverified so far.


The company has received Rs 265 crore worth of claims from operational creditors as well but so far they have not been verified.


Following the verification of the claims received, the IRP will form the committee of creditors (CoC) and then call for expression of interest (EoIs) from prospective bidders for the assets of the company. Once the EoIs come in, they will be vetted by the resolution professional’s team and will be presented to the CoC for their approval. The CoC has to then approve the highest bid with a majority for the resolution process to conclude.


Last month, the Mumbai bench of National Company Law Tribunal (NCLT) admitted the petition moved by Bank of India under Section 7 of Insolvency and Bankruptcy Code (IBC) to start proceedings against Future Retail and appointed an IRP in the matter. Bank of India had moved the insolvency petition against Future Retail on April 14 for its dues not being paid.


The Future Group in 2020 decided to sell its unlisted and listed companies to Reliance Retail for about Rs 25,000 crore to repay its ballooning debt. However, e-commerce giant Amazon, which had in 2019 acquired 49 per cent in Future Coupons, a company that owns 10 per cent in Future Retail, accused Future Group of breach of contract.


In a regulatory filing, Reliance Industries recently said the deal with Future Retail would not go through because the company’s secured creditors had voted against it. Reliance Retail may now look at buying the assets of Future Group, depending on what is up for sale, according to industry participants.



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