Future Retail insolvency: Expression of interest invited by October 20

New Delhi: The resolution professional of Future Retail Ltd (FRL) has invited 'expression of interest' from prospective buyers under the ongoing Corporate Insolvency Resolution Process (CIRP).

All interested and eligible prospective resolution applicants (PRA) for FRL are required to submit an expression of interest for the resolution plan by October 20, 2022.

The resolution professional (RP) will issue the final list of PRAs on November 6, 2022, and a deadline of December 6, 2022, has been fixed for the submission of resolution plans, according to the 'Invitation to submit 'expression of interest' issued by RP of FRL. However, it added that the timelines "remain subject to modification by the CoC and any extension/exclusion to the timelines" for completion of CIRP of FRL under the Insolvency & Bankruptcy Code (IBC) 2016.

PRAs should have a minimum tangible net worth of Rs 100 crore along with minimum assets under management (AUM)/committed funds available for investment of Rs 250 crore. As per the invitation, FRL currently has access to 302 leased retail stores spread across 23 states and Union territories, consisting of 30 large format stores such as Big Bazaar and FBB stores and 272 small format stores.

FRL's employee strength has also gone down substantially. According to the FY21 annual Report, FRL had 21,839 employees at head office, zonal offices, retail stores, design houses and data centre's across the country.

"However, basis details received from the Corporate Debtor, we have been informed that the Corporate Debtor had 2,242 employees during August 2022," the invitation said. The Mumbai bench of the NCLT had on July 20 directed to initiate CIRP against FRL admitting a plea filed by Bank of India.