reliance retail ventures: NCLT allows 45-day extension for Future unit resolution

MUMBAI: The lenders to Kishore Biyani-promoted Future Supply Chain Solutions got an extension of 45 days to complete the corporate insolvency resolution process (CIRP) to consider bids from Reliance Retail Ventures and Tatkal Loan India.

On Friday, the resolution professional of the BSE-listed Future Supply Chain Solutions, Rajan Rawat, sought an extension of 45 days, pleading that two prospective resolution applicants have submitted their bids and lenders have already requested them to increase the value of their plans.

“These plans are under active consideration and lenders are already in talks with the bidders to maximise the value,” the resolution professional argued through his lawyer.

The division bench of judicial member Lakshmi Gurung and technical member Charanjeet Singh Gulati allowed the request in an oral order. The detailed order was awaited.

Originally, apart from Reliance Retail Ventures and Tatkal Loan India, other bidders such as One City Infrastructure, Globe Ecologistics, Shanti G.D. Ispat & Power, Camions Logistics Solutions and Sugna Metals had shown interest in acquiring the company through the bankruptcy process.

“The Insolvency and Bankruptcy Code provides for an overall time limit of 330 days for completion of CIRP,” said Himanshu Vidhani, partner at law firm Chandhiok & Mahajan. “However, the courts, in exceptional circumstances, have extended the time limit beyond 330 days also.”Last year, on January 5, the company was admitted under the CIRP following an application filed by its operational creditor, DHL E-Commerce (India) Pvt Ltd, after the company defaulted on its dues of about Rs 7.26 crore. The company has total admitted liabilities of Rs 885 crore. The bankrupt company’s major creditors include Azim Premji Trust (Rs 274 crore), DFC First Bank (Rs 158 crore), JC Flowers Asset Reconstruction (Rs 63 crore) and State Bank of India (Rs 45 crore).