Future enterprises admitted for Insolvency
Future enterprises, the unit of future group has been admitted to insolvency resolution process via NCLT order dt February 27 2023 following a petition filed by operational creditors.
Details
In the month of August 2022, Foresight innovations, the supplier to whom payment of ₹ 1.58 Crores was in default by future enterprises and another operational creditor- Retail details India limited to whom payment was overdue to the extent of ₹ 4.02 Crores, had filed petition with NCLT. Section 9 of IBC gives power to operational credit cards of a company to initiate corporate insolvency resolution process in case off default in payment.
The tribunal had allowed about 2.5 months time for the debtor to settle its due. But the debtor failed to settle its obligations. In view of the same, the NCLT had admitted the petition and also appointed Jitender Kothari as Insolvency professional.
Reliance-Future Group acquisition deal :
It is pertinent to note that previously in April 2022, Reliance Industries had called off its Rs. 24713 Crore acquisition deal of Future Group (earlier announced in August 2020) due to FG’s secured creditors rejecting the scheme.
Future Retail admitted for insolvency:
Flagship company of Future group -‘Future retail’ was also admitted for insolvency in July 2022, with admitted claim by creditors for about ₹19,185 Crores. And in Jan 2023, petition for insolvency filed against future supply chain solutions by its operational creditor DHL was also admitted by NCLT, owing to default in settlement to creditors.