Jindal (India) to compete with Reliance Retail for Future Enterprises acquisition, submits debt resolution plan: Report

Debt-laden Future Enterprises may have a new suitor. Jindal (India) has reportedly submitted a debt resolution plan for Future Enterprises under the Insolvency and Bankruptcy Code (IBC) process. Mukesh Ambani-controlled Reliance Retail is already in the race to acquire the company. Earlier, Reliance Retail had sought time till October 30 to take a call on its bid for Future Enterprises.

Details of the financial bid placed by Jindal couldn't be ascertained as it was submitted in a sealed envelope, the Economic Times reported.

In July this year, Future Enterprises had mentioned in an exchange filing to the stock exchange that it had received resolution plans from Reliance Retail Ventures, Jindal (India) Ltd, and Donear Industries-owned textiles maker GBTL Ltd.

Avil Menezes, resolution professional of Jindal (India), Reliance Retail and Future Enterprises', had disclosed the names of these three entities as a 'provisional list of prospective resolution applicants'.

On February 27, the National Company Law Tribunal (NCLT) admitted Kishore Biyani’s Future Enterprises for corporate insolvency. The Mumbai bench of the NCLT ordered the "commencement of corporate insolvency resolution process" for the firm. As per the plan, the firm will be auctioned in order to recover unpaid dues.

The Kishore Biyani-led Future group firm had significant borrowings in the form of bonds and thus, several trusteeship companies have filed claims. Centbank Financial Services has filed the highest claim of Rs 3,344 crore, followed by Axis Trustee Services at Rs 1,341 crore and Vistra ITCL (India) at Rs 210 crore. The RP has admitted Rs 12,265 crore of verified claims from lenders and Rs 23 crore of claims from fixed deposit holders.

In June, Future Enterprises had invited Expression of Interest for its businesses which are across manufacturing, trading and leasing of retail infrastructure across Maharashtra, Karnataka and across India, it said in a stock exchange filing. Future Enterprises had stated that it has three manufacturing plants at Tarapur-Boisar, Mahadevpura and Anekal, Bengaluru.

In a separate exchange filing in the same month, FEL said the IRP has received claims of Rs 2.58 crore from employees, of which it has admitted Rs 2.24 crore. It also received statutory dues totalling Rs 14.75 crore from the state tax department and GST authorities.

"The Interim Resolution Professional has received claims from 803 Unsecured Financial creditors, 22 Secured Financial creditors (other than financial creditors belonging to any class of creditors) and 10 Unsecured Financial creditors (other than financial creditors belonging to any class of creditors) upto 5 June 2023," the company said.

Besides, the IRP has also received claims from "42 employees of Corporate Debtor (FEL), 4 Operational Creditors (Government dues) and 161 Operational Creditors (other than ‘Workmen and Employees and Government Dues)" within 90 days of CIRP, the report said.

The Kishore Biyani-led Future group firm has defaulted on several payments in the last few months.

The latest default is on the interest of securities issued for a sum of Rs 120 crore.

FEL has defaulted on interest payment for the period between December 20, 2021, to June 19, 2022, it said.

The debentures are secured and have a coupon rate of 10.15 per cent per annum.

Earlier this month, FEL had defaulted on payment of interest of Rs 1.41 crore for its non-convertible debentures of Rs 29 crore.

Four of the Kishor Biyani-controlled Future Group companies are undergoing insolvency proceedings. Besides FEL, Future Retail Ltd, Future Lifestyles Fashion Ltd and Future Supply Chain Ltd are at different stages of insolvency proceedings.

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