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Jindal India hops in with Future Enterprises bid, submits resolution plan

Only after Reliance Retail conveys its decision to Future Enterprises' creditors about its intent to either continue or walk out of the bidding process, will the bid be opened

insolvency

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BS Web Team New Delhi

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A debt resolution plan for debt-laden Future Enterprises has been submitted by Jindal (India) under the Insolvency and Bankruptcy Code (IBC) process, according to a report by The Economic Times (ET). Since the bid was submitted in a sealed envelope, as is common practice for confidential bids submitted under the IBC, details of the bid placed by Jindal couldn't be confirmed. 

According to sources, the proposal could put the company in contention against Reliance Retail, which has sought time till October 30 to decide if it wants to bid for Future Enterprises.

Only after Reliance Retail conveys its decision to Future Enterprises' creditors about its intent to either continue or walk out of the bidding process, will the bid be opened. On February 27, in response to a petition filed by a creditor claiming the company had defaulted on payments, the National Company Law Tribunal admitted Future Enterprises for insolvency proceedings.

Creditors are hoping for a better outcome from the insolvency process of Future Enterprises, which owns stakes in life and general insurance joint ventures operated with the Generali group since 2006.

After Future Retail defaulted on banks and suppliers, the Kishore Biyani-led company was sent for debt resolution under IBC 2016, in October last year. In April this year, 49 companies expressed interest to acquire the company, although most backed out while making a binding bid. Of the 49, only six companies, mainly scrap dealers, sent their binding offers.

Future Group companies had begun struggling even before the pandemic led to the closure of 1,800 shops across 420 cities.

In August 2020, the group announced a Rs 24,700 crore transaction with Reliance Retail: all companies were to merge under one entity and transfer to the Reliance entity. Lenders later rejected this transaction, and the companies were sent for debt resolution under IBC.

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First Published: Oct 27 2023 | 11:07 AM IST

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