Future Retail insolvency resolution: Financial creditors claim Rs 21,058 crore

Of these claims from as many as 33 financial creditors, an amount of Rs 17,511.69 crore has been verified by the interim resolution professional (IRP). Claims worth Rs 3,546 crore are yet to be verified.

ET Now Digital

Updated Aug 22, 2022, 20:27 IST

Future Group

Future Retail Ltd’s financial creditors have submitted a total claim of Rs 21,058 crore under the ongoing insolvency resolution process, according to a document available on the company’s website.

US-based Bank of New York Mellon, a financial creditor, has placed a claim worth Rs 4,669 crore, of which Rs 4,109 has been verified.

Domestic banks State Bank of India, Union Bank of India, Bank of Baroda, Central Bank of India, Indian Bank, Punjab National Bank, UCO Bank, Indian Overseas Bank and several others have claimed over Rs 12,755 crore. This total claim from domestic lenders is almost 60 per cent of the claims the embattled firm received from financial creditors.

Axis Bank, IndusInd Bank, IDFC First Bank, and Yes Bank have placed claims of Rs 464.46 crore, Rs 357.67 crore, Rs 220.55 crore, and Rs 148.70 crore, respectively. Axis Trustee Services Ltd has made a claim of Rs 1,266.28 crore, which remained unverified so far.

Last month, the Mumbai bench of National Company Law Tribunal (NCLT) admitted the petition moved by Bank of India under Section 7 of Insolvency and Bankruptcy Code (IBC) to start proceedings against Future Retail and appointed an IRP. Bank of India had moved the insolvency petition against Future Retail on April 14.

The Future Group in 2020 decided to sell its unlisted and listed companies to Reliance Retail for about Rs 25,000 crore to repay its soaring debt. However, e-commerce giant Amazon, which had in 2019 acquired 49 per cent in Future Cou-pons, a company that owns 10 per cent in Future Retail, accused Future Group of breach of contract.

In a regulatory filing, Mukesh Ambani's RIL said the deal with Future Retail would not be implemented because the company’s secured creditors had voted against it.

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