Future Lifestyle lenders approve bid from Space Mantra & Guptas' consortium

The lenders of Future Lifestyle Fashions Ltd, going through insolvency resolution, have approved the bid from a consortium of Space Mantra and Sandeep Gupta & Shalini Gupta.

The Committee of Creditors (CoC) of Future Lifestyle Fashions Ltd (FLFL) has voted in favour of the resolution plan submitted by the consortium, according to a regulatory filing from the company.

"We hereby inform and place on record that the resolution plan submitted by consortium of Space Mantra Pvt Ltd and Sandeep Gupta & Shalini Gupta is approved by the Committee of Creditors of FLFL on September 27, 2024," it said.

The company has not shared the details of the plan approved by the lenders. It also informed that the Corporate Insolvency Resolution Process (CIRP) period for FLFL ended on August 26, 2024.

The Resolution Professional (RP) of the company filed an application before the National Company Law Tribunal on August 24, 2024, seeking extension of the CIRP period.

The CIRP proceedings of FLFL is therefore subject to the Hon'ble NCLT passing an extension order in the application filed by the RP on the 24th August 2024, it said.

As per Section 12(1) of the Insolvency & Bankruptcy Code (IBC), CIRP should be completed within 180 days.

However, this period can be extended up to 330 days, including litigation period, failing which the corporate debtor is sent for liquidation.

FLFL had in-house retail chains Central and Brand Factory. It operated exclusive brand outlets (EBOs) and other multi-brand outlets (MBOs) of nearly a dozen apparel labels, including Lee Copper, Champion, aLL, Indigo Nation, Giovani, John Miller, Scullers, Converse and Urbana in its portfolio.

State Bank of India leads the CoC of FLFL with a 22.51 per cent voting share. It had an admitted loan of Rs 476.59 crore.

In June 2023, FLFL had informed that it had received a total claim of Rs 2,155.53 crore from 12 financial creditors in CIRP initiated against the company.