The development comes within a fortnight of the lenders issuing a legal notice to Iyer for putting on the block inventories of Future Retail without seeking their approval. At a voting held on September 30, majority lenders rejected Space Mantra s 550-crore plan for Kishore Biyani-promoted Future Retail. Despite five weeks having passed, Iyer has not filed an application for liquidation before the National Company Law Tribunal (NCLT).
Kishore Biyani-promoted Future Retail, which is undergoing a corporate insolvency process, received only one eligible resolution plan from Space Mantra even as large conglomerates such as Adani Group and Reliance Industries had made expressions of interest.
HDFC Bank, which had initially raised concerns about SpaceMantra s debt resolution proposal for Future Retail Ltd (FRL), surprised everyone by voting in favor of the Rs 550 crore offer. However, the offer did not receive the necessary majority support. The voting results showed that 58.38% of lenders voted against SpaceMantra s offer, which means that the company may now be liquidated.
Kishore Biyani-promoted Future Retail, which is undergoing a corporate insolvency process, received only one eligible resolution plan from Space Mantra even as large conglomerates such as Adani Group and Reliance Industries had made expressions of interest.
The committee of creditors (CoC) for Future Retail (FRL) has extended the voting period once again as they are undecided on whether to approve a low offer from SpaceMantra or opt for liquidation. The creditors have until September 30 to make a decision. SpaceMantra is the only bidder to acquire FRL, offering a recovery of about 2.79% for creditors. Lenders are uncomfortable with the offer and have raised concerns about valuations and the inaccessible nature of many FRL stores.