Future Retail creditors file claims worth Rs 21,324 crore before insolvency resolution process

Creditors of Future Retail Ltd have submitted claims worth Rs 21,324.18 crore against the debt-ridden company presently facing an insolvency resolution process.

The financial creditors of the companies, which mainly include banks and financial institutions, have filed claims of Rs 21,057.89 crore before the interim resolution professional of the company.

Of this, Rs 17,511.69 crore worth of claims are verified and the rest of Rs 3,546.20 crore are unverified.

Operational creditors of the Future group firm have filed claims worth Rs 265.16 crore, according to the documents uploaded on the official website of Future Retail Ltd (FRL).

Besides, 462 workmen have also filed claims of Rs 9.83 crore.

As per the Insolvency & Bankruptcy Code, the IRP collates the claims and a Committee of Creditors is constituted with voting shares of the lenders in the proportion of their loan exposure.

The Mumbai bench of the National Company Law Tribunal had on July 20 directed to initiate the Corporate Insolvency Resolution Process (CIRP) against FRL admitting the plea filed by Bank of India.

As per the documents, Bank of New York Mellon has the highest claim of Rs 4,669.84 crore and would have a 23.47 per cent voting share in the CoC.

This is followed by the Bank of Baroda with Rs 2,285.75 crore and Union Bank of India with Rs 2,002.42 crore.

A total of 33 banks and financial institutions have filed their claims.

As per the IBC, after verifying all claims, the Resolution Professional would invite the bids, which would be cleared by the CoC.

FRL was part of the 19 group companies operating in retail, wholesale, logistics and warehousing segments which were supposed to be transferred to Reliance Retail as part of a Rs 24,713-crore deal announced in August 2020.

The deal was called off by the billionaire Mukesh Ambani-led Reliance Industries Ltd in April.

After that FRL committed several defaults on payments.