In a recent development, the resolution professional backed by Deloitte, Vijaykumar Iyer, has proposed a new round of bidding for Future Retail, a Kishore Biyani-promoted company currently undergoing a corporate insolvency process.
This proposal came as a surprise to lenders, especially after the rejection of a ₹550-crore buyout offer from Space Mantra on a Saturday evening. However, the lenders unanimously turned down the proposal to restart the process, deeming it a potential waste of time with no guarantee of receiving improved offers.
Unexpected Proposal Amidst Insolvency Proceedings
Future Retail, despite expressions of interest from large conglomerates like Adani Group and Reliance Industries, received only one eligible resolution plan from Space Mantra.
The fresh proposal for a new bidding round by the resolution professional came post the rejection of this offer. The lenders were quick to reject this proposal, emphasizing the uncertainty and time-waste it could entail.
Lenders’ Concerns and Future Implications
The rejection came after a virtual meeting held post the voting deadline at 9.00 pm on Saturday. Lenders voiced their concerns stating that there’s no certainty of receiving improved offers in a re-run of the process.
The resolution professional did not immediately release the voting results, but it was clear that a majority of lenders were against the plan. If more than 66% of lenders (by value) vote against the plan, the resolution professional must recommend liquidation to the National Company Law Tribunal.
Table of Key Information
| Aspect | Details |
|---|---|
| Company | Future Retail |
| Resolution Professional | Vijaykumar Iyer (Backed by Deloitte) |
| Proposed Buyout Offer | ₹550 crore by Space Mantra |
| Lenders’ Reaction | Unanimous rejection of fresh bidding round proposal |
| Next Step | Possible recommendation for liquidation |
Frequently Asked Questions
- Who proposed the new bidding round for Future Retail?
- The new bidding round was proposed by Deloitte-backed resolution professional, Vijaykumar Iyer.
- What was the reaction of the lenders to this proposal?
- The lenders unanimously rejected the proposal, citing it as a potential waste of time with no guarantee of better offers.
- What happens if more than 66% of lenders vote against the plan?
- If more than 66% of lenders vote against the plan, the resolution professional must recommend liquidation to the National Company Law Tribunal.
