NEW DELHI: Future Retail stares at liquidation after the committee of creditors (CoC) has rejected the only resolution plan submitted by Space Mantra. In an exchange filing, the erstwhile Kishore Biyani-promoted company said: “The resolution plan submitted by Space Mantra Private Limited was put to vote for the consideration of the CoC on 19 July 2023 in terms of Section 30(4) of the Insolvency and Bankruptcy Code, 2016 and pursuant to the decision taken by CoC through e-voting, concluded on 30th September 2023 at 9 PM (IST), the resolution plan submitted by Space Mantra Private Limited has not been approved by CoC.”
It further said that since the resolution plan has not been approved by the CoC, the next steps would be taken in accordance with the Insolvency & Bankruptcy Code 2016. Under IBC, if no resolution plan is approved by the CoC, the next step is to liquidate the insolvent company. Space Mantra, which has been founded by former NBCC chairman and managing director Anoop Kumar Mittal, had offered to buyout the company for a sum of R550 crore against lenders’ total admitted claims of R19,773 crore.
According to reports, resolution professional of Future Retail Vijaykumar V Iyer had suggested a rebidding process but the lenders rejected the proposal. Insolvency proceedings against Future Retail began on 20 June 2022 after the Mumbai bench of the National Company Law Tribunal (NCLT) admitted the insolvency plea filed by Bank of India against the company. BoI initiated the insolvency proceedings after Future Retail defaulted on a payment of R856 crore.