Resolution professional seeks EOI for Future Enterprises, sets deadline

The Resolution Professional has invited Expression of Interest (EoI) for Future Enterprises Ltd’s (FEL’s) garment manufacturing units, investments in Apollo Mills and Goldmohur Mills situated in Mumbai, and investments in life and general insurance ventures.

Foresight Innovation Private Limited, an operational creditor of FEL, moved an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, for initiating the corporate insolvency resolution process (CIRP) of the company. The company has been defaulting on payments, including debt and interest. The National Company Law Tribunal, Mumbai Bench (NCLT), through an order dated February 27, 2023, admitted the company into CIRP.

The resolution professional has set February 27, 2024, as the deadline for submitting resolution plans.

Initially, Jitender Kothari was appointed as the interim resolution professional (IRP) of the Company. Later, Avil Menezes was appointed as the resolution professional (RP) following the decision of the committee of creditors (CoC). NCLT confirmed Menezes's appointment as RP in June 2023.

The admitted claims of financial creditors stood at Rs 13,540 crore as of November 2023. Centbank Financial Services Ltd has the highest claims amounting to over Rs 3,344 crore. Some of the lenders with substantial claims include Union Bank of India – Rs 1,507 crore, Axis Trustee Services – Rs 1,341 crore, Bank of India – Rs 1,109 crore, Punjab National Bank – Rs 1,099 crore, and Indian Bank – Rs 1,098 crore, according to filings on the company's website.

The Kishore Biyani-promoted company has two garment manufacturing units located at Tarapur-Palghar in Maharashtra and Mahadevapura-Bengaluru in Karnataka. The company does job-work and has a specialized apparel design, merchandising, and sourcing team, coupled with an in-house manufacturing facility. Some of the key brands sourced and manufactured across the above units include menswear brands like Raymond's, Park Avenue, Shoppers Stop, and Lifestyle, to name a few, according to the EoI document.

The company holds investments in Apollo Mills and Goldmohur Mills in Mumbai and has entered into a joint venture with National Textile Corporation (“NTC”) for the restructuring and development of these two mills.

FEL holds direct and indirect investments in Future Generali India Insurance Company Limited (FGIICL). It is a joint venture between the Company (24.91 per cent shareholding) and Generali Group (74 per cent shareholding). FGIICL is engaged in the non-life insurance business.

The Company holds direct and indirect investments in Future Generali India Life Insurance Company Limited (FGILICL). Its stake in a joint venture is 25.18 per cent.