Liquidation Looms Over Future Retail

The resolution professional files an application for liquidation of bankrupt retailer after its creditors rejected Space Mantra’s resolution plan
Liquidation Looms Over Future Retail
Image Source: Future Retail

Bankrupt Future Retail Ltd. is staring at liquidation after its resolution professional filed an application for initiation of liquidation of the company.

The company’s resolution professional on 9 November submitted an application before the Mumbai bench of the National Company Law Tribunal (NCLT) for initiation of liquidation of Future Retail under Section 33 of the Insolvency and Bankruptcy Code, distressed retailer’s Company Secretary Pratiksha Salecha said in a stock exchange announcement today.

The development comes after Future Retail’s creditors recently rejected the resolution plan submitted by Space Mantra Private Ltd. The last date for completion of the company’s corporate insolvency resolution process was 30 September.

Future Retail was admitted into an insolvency resolution by the NCLT in July 2022, following a petition by the company’s financial creditor Bank of India over an alleged default amount of 1,441.62 crore rupees ($173 million).

Note: $1 = 83.2875 Indian rupees

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