Financial Insights

Lenders to take Future Group companies to Insolvency court

Insolvency under IBC seems to be the only way out for the Kishore Biyani led Future Group of companies as Bank of India filed a petition for initiating insolvency procedures against the company in Mumbai.

Future Group had a lifeline in the form of a deal with Reliance wherein the stressed group would sell 18 companies operating in retail, warehousing, logistics and wholesale businesses. This deal worth Rs 24,731 crores could’ve saved the group a lot of troubles but the deal fell through.

Secured lenders of the Future Group voted against the deal and managed to get the deal rejected with a 69% majority. All of it’s lenders will now initiate insolvency procedures against the company to recover whatever they can from the debt of Rs 28,000 crores, expectations being below 10% of the figure.

Reliance, who is in control of 800 of it’s stores, can now bid for the assets of the company when they are put up for sale under IBC.

Highlight by Aman Agarwal.

Related Articles

Back to top button