Bank of India has filed an application in the National Company Law Tribunal (NCLT) against the debt-ridden Future Retail Limited (FRL).
Bank of India has filed a petition in the National Company Law Tribunal (NCLT) against the debt-ridden Future Retail Limited (FRL). The petition seeks bankruptcy proceedings against Future Retail.
Future Retail Limited (FRL) reported earlier this month that it had failed to repay loans of Rs 5,322.32 crore to its creditors on time. The agency said this was due to ongoing lawsuits and other related issues with the American e-commerce company Amazon.
“The Bank of India (BOI) has given us advance notice that it is going to file a petition against the company in the NCLT under Section 7 of the Insolvency and Bankruptcy Code, 2016,” Future Retail said in a statement to the Stock Exchange. The petition is being sued for non-payment of arrears under the company’s agreement with the bank. Future Group Company said it had received a copy of the petition and was seeking legal advice.
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A consortium of banks led by Bank of India has lent to Future Retail. Bank of India last month claimed the property of Future Retail by placing an advertisement in a newspaper after failing to repay the loan on time. At the same time, he warned people against the company’s property-related transactions, led by Kishore Biyani.
Several companies in the Future Group, including Future Retail, have entered into an agreement with their lenders on the basis of an RBI circular issued on 6 August 2020. It announced a resolution framework for corona epidemic issues.
Let us know that in August 2020, Future Gru announced the sale of 19 of its companies in retail, wholesale, logistics and warehousing to Reliance Retail Ventures Limited under an agreement worth Rs 24,713 crore. This includes Future Retail Limited. Under the proposed agreement, the 19 companies would be merged into a company called Future Enterprise and then transferred to Reliance Retail Ventures. However, the deal stalled after being challenged by American e-commerce Amazon.