Future Retail Limited’s journey reached a critical juncture as the National Company Law Tribunal (NCLT) in Mumbai ordered its liquidation. This decision followed the expiration of the maximum period for the corporate insolvency resolution process (CIRP) without the approval of a resolution plan by the Committee of Creditors (CoC).
The tribunal’s decision, handed down by judicial member Kuldip Kumar Kareer and technical member Anil Raj Chellan, highlighted the absence of viable solutions to save the retail giant. The CIRP for Future Retail had commenced in July 2022, overseen by resolution professional Vijaykumar Iyer. Despite the efforts, only one resolution plan was presented, which failed to secure the necessary votes from the CoC. Consequently, on October 26, 2023, the CoC opted for liquidation.
Sanjay Gupta has been appointed as the liquidator, tasked with maximizing the value of Future Retail. The NCLT emphasized the need to explore the sale of the company as a going concern, following the regulations set by the Insolvency and Bankruptcy Board of India.
The insolvency proceedings were triggered after Future Retail defaulted on a credit facility agreement with the Bank of India and other lenders. This occurred against the backdrop of a failed deal with Reliance, worth ₹24,713 crores, which faced opposition from secured creditors, including Amazon.
As Future Retail enters the liquidation phase, the focus will be on salvaging whatever value remains for its creditors and stakeholders.
