Debted Future Lifestyle Fashion (FLFL) faces three petitions from creditors against NCLT to initiate bankruptcy proceedings, one of which is reserved for orders , Future Group said on Tuesday.
Three creditors (two financial and one operational) have filed claims with the National Corporation Law Court (NCLT) totaling approximately INR 110 billion, according to the latest report on bankruptcy by FLFL and other matters under the Bankruptcy Code. Information has been released.
FLFL said all claims were “defended by the company prior to the NCLT,” adding that “none have been admitted by the NCLT to date.”
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Public sector lender Bank of India has filed a petition alleging default under Section 7 of IBC for Rs 495.91 crore. Another financial creditor, Catalyst Trusteeship Ltd, approached his NCLT for a claim of Rs 451.98 crore.
Meanwhile, FLFL’s operating creditor, Lotus Lifespaces LLP, has also approached under Section 9, alleging default of Rs.150.37 crore.
“The matter has not yet been heard and the next public hearing is September 26, 2022,” it told FLFL.
The Bank of India petition will be listed on 12th September 2022 and the next public hearing is on 11th October 2022.
However, the NCLT added that it had reserved its order on a petition filed by the Catalyst Trusteeship.
Under Section 7 of the IBC, a company’s financial creditors, including banks and financial institutions, may file petitions with the NCLT to initiate the corporate insolvency process (CIRP) alleging default.
Section 9 of the IBC, on the other hand, gives operating creditors the power to file bankruptcy petitions in the event of default. A trade creditor is a creditor who owes due to membership fees arising from a business transaction.
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FLFL includes in-house retail chains Central and Brand Factory, Exclusive Branded Outlets (EBO), and other multi-brand outlets (Lee Copper, Champion, a ALL, Indigo Nation, Giovanni, John Miller, Scholars, etc. There are nearly 12 apparel label MBOs). , Converse and Urbana are included in its portfolio.
FLFL is currently seeking members’ consent to sell in-store retail infrastructure assets that will be used to repay debt and other operational liabilities.
Future Group companies are conducting electronic ballots beginning on September 14, 2022 and ending on October 13, 2022, said a mail-in ballot notice filed by FLFL before the stock exchange. .
The company has advised its board of directors to “sell, lease, rent, transfer, or transfer/dispose of any fixed assets located in the company’s non-operating stores (in-store retail infrastructure assets)” or otherwise authorize I asked for The Board of Directors may deem it appropriate.
FLFL said last week it had received a three-month extension from the Registrar of Companies to hold its annual shareholder meeting.
On 27 August, in announcing its first quarter 2023 results, FLFL announced that it will pay off a total of Rs. I said I have an obligation.
The FLFL further said, “As of 31 March 2022, current liabilities exceeded current assets (including assets held for sale) by Rs.1,180.66 crore.”
Also, as of 30 June 2022, repayment of Rs 335.08 crore in principal of loans from banks has already defaulted.
FLFL is one of 19 group companies operating in the retail, wholesale, logistics and warehousing sectors to be transferred to Reliance Retail as part of a Rs.2471.3 billion transaction announced in August 2020. It was the department.
The deal was canceled by Reliance Industries in April after failing to win the support of its lenders.
As a result, Kishore Biyani’s retail empire is in serious financial trouble.
