Reliance Retail Ventures Ltd (RRVL) has been selected as "prospective" buyers for Future Enterprises Ltd (FEL), which is currently undergoing the Corporate Insolvency Resolution Process, the PTI reported. Apart from Reliance Retail, two more companies have also been selected as prospective" buyers.
According to the PTI report, the resolution professional of Future Enterprises has finalised a provisional list of three Prospective Resolution Applicants (PRA), an exchange filing from the debt-ridden company said. Besides RRVL, steel maker Jindal (India) and GBTL, maker of polyester viscose & blended fabrics are on the list.
The deadline for submission of resolution plans by PRAs is August 24, 2023. CIRP was initiated by the National Company Law Tribunal (NCLT) earlier this year in March over a plea moved by its operational creditors. Interestingly, RRVL is also among the final list of prospective buyers for another Future Group flagship firm, Future Retail, which is also facing CIRP.
FEL was part of the 19 group companies operating in retail, wholesale, logistics and warehousing segments, which were to be transferred to Reliance Retail as part of a Rs 24,713-crore deal announced in August 2020.
As per the deal, all companies were to be merged in FEL and then transferred to Mukesh Ambani-led Reliance Industries' retail arm. The deal was called off by Reliance Industries in April last year. After that, FEL committed several defaults on payment of interest on its several non-convertible debentures.
According to the last filing by Future Enterprises, the RP has received a total claim of Rs 7,014.83 crore from the secured creditors, in which Rs 6,952.42 crore has been approved. Similarly, it has received claims worth Rs 8,805.09 crore from unsecured creditors in which Rs 5,313.27 has been admitted.
The RP has received a claim of Rs 172 crore from operational creditors and Rs 14.75 crore as statutory dues. Besides, it has received claims from FEL employees. FEL is engaged in the business of manufacturing, trading, leasing of assets and logistics services. It also holds the group's investments in subsidiaries and joint ventures including in sectors like insurance, textile manufacturing, supply chain and logistics.