Future Group on the brink of bankruptcy despite respite in Reliance deal
Cash-strapped Future Group is trying to expedite the deal with Mukesh Ambani-led company and save the retail chain -- which includes brands like Big Bazaar, FBB, Central, Easyday and Brand Factory
- Mar 23, 2021,
- Updated Mar 23, 2021 12:40 AM IST
Kishore Biyani's Future Group companies are in the last leg of their survival battle as the suspension of Insolvency and Bankruptcy Code (IBC) is going to end on March 31. The group companies, which have outstanding debt of around Rs 17,000 crore, are in negotiations with the banks for one-time restructuring of loans. While the banks are yet to finalise the repayment reliefs, the group companies are worried about the non-bank lenders and operational creditors, who can also take the companies to the bankruptcy court post March.
The Delhi High Court's stay on the single-judge bench order, which restrained the flagship company Future Retail from selling its assets to Reliance Retail, is a relief for the group. The US e-commerce giant Amazon had raised objection against Rs 24,713 crore deal between Reliance and Future, and got a favourable award from Singapore's Emergency Arbitrator in October 2020. Based on the award, the single bench of Delhi High Court had disallowed the parties from going ahead with the deal. The hearing will continue from the last week of April.
Kishore Biyani's Future Group companies are in the last leg of their survival battle as the suspension of Insolvency and Bankruptcy Code (IBC) is going to end on March 31. The group companies, which have outstanding debt of around Rs 17,000 crore, are in negotiations with the banks for one-time restructuring of loans. While the banks are yet to finalise the repayment reliefs, the group companies are worried about the non-bank lenders and operational creditors, who can also take the companies to the bankruptcy court post March.
The Delhi High Court's stay on the single-judge bench order, which restrained the flagship company Future Retail from selling its assets to Reliance Retail, is a relief for the group. The US e-commerce giant Amazon had raised objection against Rs 24,713 crore deal between Reliance and Future, and got a favourable award from Singapore's Emergency Arbitrator in October 2020. Based on the award, the single bench of Delhi High Court had disallowed the parties from going ahead with the deal. The hearing will continue from the last week of April.