IRP reframes CoC of Future Enterprises

New Delhi: Taking a step forward for debt resolution, the Interim Resolution Professional of debt-ridden Future Enterprises Ltd (FEL) has reconstituted the Committee of Creditors (CoC) and claims of more than Rs12,265 crore have been admitted from both secured and unsecured financial creditors.

The Interim Resolution Professional (IRP) has received claims of Rs7,014.83 crore from 22 secured financial creditors of FEL. A total of Rs6,952.42 crore of claims have been admitted as of June 5, 2023. The IRP also received claims of Rs8,880.50 crore from unsecured financial creditors, of Rs5,313.27 crore of claims have been admitted.

In the CoC, Centbank Financial Services Ltd has the highest voting percentage of 27.22 per cent. Union Bank of India (UBI) and Axis Trustee Services have 10.97 per cent and 10.92 per cent voting percentages, respectively. Centbank Financial Services Ltd had claimed an amount of Rs3,344.81 crore as due, which has been fully admitted. Axis Trustee Services has claimed Rs1,341.96 crore, which has been fully admitted. FEL is going through Corporate Insolvency Resolution Process (CIRP) after the Mumbai bench of the National Company Law Tribunal (NCLT) admitted a plea from one of its operational creditors in February this year and appointed Jitender Kothari as IRP suspending the board.

The IRP has received claims of Rs2.58 crore from employees, of which it has admitted Rs2.24 crore, according to the latest regulatory update by FEL. Besides, it has also received statutory dues totalling Rs14.75 crore from the state tax department and GST authorities.

The IRP has reconstituted the Committee of Creditors for the Corporate Debtor Future Enterprises Ltd (FEL) on May 10 and an interlocutory application has been filed with the NCLT, Mumbai said a copy of the report which was updated with the bourses. The Interim Resolution Professional has received claims from 803 Unsecured Financial creditors, 22 Secured Financial creditors (other than financial creditors belonging to any class of creditors) and 10 Unsecured Financial creditors (other than financial creditors belonging to any class of creditors) upto June 5, 2023.”

Besides, the IRP has also received claims from 42 employees of Corporate Debtor (FEL), 4 Operational Creditors (Government dues) and 161 Operational Creditors (other than ‘Workmen and Employees and Government Dues) within 90 days of CIRP, the report said.

FEL is engaged in the business of manufacturing, trading, leasing of assets and logistics services. It used to develop, own and lease the retail infrastructure for the Future Group. It also holds the group’s investments in subsidiaries and joint ventures including in sectors like insurance, textile manufacturing, supply chain and logistics. It was part of the 19 group companies operating in the retail, wholesale, logistic and warehousing segments, which were supposed to be transferred to Reliance Retail as part of a Rs24,713-crore deal announced in August 2020. The deal was called off by Reliance Industries (RIL) in April after it failed to get lenders’ support.