Bank Of India Files Petition Under Section 7 Of IBC Against Future Retail Limited
The Bank of India has filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 ("IBC") before the National Company Law Tribunal ("NCLT"), Mumbai Bench, seeking initiation of Corporate Insolvency Resolution Process ("CIRP") against Future Retail Limited ("FRL"). The matter has not been listed yet for its first hearing. A Framework Agreement was entered into between...
The Bank of India has filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 ("IBC") before the National Company Law Tribunal ("NCLT"), Mumbai Bench, seeking initiation of Corporate Insolvency Resolution Process ("CIRP") against Future Retail Limited ("FRL"). The matter has not been listed yet for its first hearing.
A Framework Agreement was entered into between the Bank of India and FRL, the petition has been filed over default of payments due under the said Agreement. The name of Mr. Vijaykumar Iyer has been proposed for the Interim Resolution Professional.
In August 2020, FRL became part of a Rs. 24,713 Crores worth deal wherein Future Group intends to sell 19 of its companies to Reliance Retail Ventures Ltd. and all these companies would then consolidate into one entity named Future Enterprises Limited. The petition has been filed a week ahead of the Shareholder's meeting being convened by FRL between 20th April to 23rd April 2022, for seeking approval from its shareholders for the Reliance Retail deal. The NCLT, Mumbai Bench vide an order dated 28.02.2022 had permitted FRL to conduct its Shareholder's meeting.