33 Banks File Loan Claims Worth Over Rs 21,000 Crore Against Debt Ridden Future Retail

Debt-ridden Future Retail, the group which owns Big Bazaar, Central, EasyDay etc, has received loan claims from 33 banks for a total of Rs 21,057 crore, according to data released by the company. The company is under the corporate insolvency resolution process (CIRP).

Future Retail has also received claims from operational creditors to the tune of Rs 265 crore; other creditors¡¯ claims at Rs 112 crore and employee claims at Rs 9 crore, as per HBL report.

Of the total claims received so far, Rs 17,511.69 crore has been verified by the interim resolution professional (IRP), while claims worth Rs 3,546 crore have reportedly not yet been verified, according to the company.

Earlier this year, a Mumbai court earlier this year ordered bankruptcy proceedings against Future Retail after it defaulted on loans with over 30 entities and its secured lenders rejected a $3.4 billion sale of its retail assets to market leader Reliance Industries, as per Reuters.

glassdoor

Also Read: Future Retail Shuts Down Big Bazaar As Reliance Plans Takeover

Who Claims What

State-owned lenders, including State Bank of India, Union Bank of India, Bank of Baroda, Central Bank of India, Indian Bank, Punjab National Bank, UCO Bank and Indian Overseas Bank, among others, have claimed over Rs 12,755 crore. That amount is almost 60% of the claims Future Retail has received from financial creditors. Bank of New York Mellon, on the other hand, has claimed Rs 4,669 crore, out of which Rs 4,109 crore has been verified. This gives the US-based bank 23% voting rights, as per the report.

Private sector banks including Axis Bank, IndusInd Bank, IDFC First Bank and YES Bank, too, have claimed Rs 464.46 crore, Rs 357.67 crore, Rs 220.55 crore and Rs 148.70 crore, respectively. Axis Trustee Services Limited, too, has claimed monies, but that has not been verified. Similarly, claims from UCO Bank, IDFC First Bank and APAC Financial Services Pvt Ltd have not been verified so far, the report mentioned.

Besides this, the IRP (interim resolution professional) has also received claims from other creditors, operational creditors and employees for around Rs 112 crore, Rs 265 crore and Rs 9 crore, respectively. The IRP has also reportedly recorded claims from four other creditors, 121 operational creditors and over 460 employees so far. However, these are yet to be verified.

shutterstock

Insolvency Proceedings Against Future Retail

In June 2022, the Mumbai bench of the National Company Law Tribunal (NCLT) admitted the petition moved by Bank of India under Section 7 of the Insolvency and Bankruptcy Code (IBC). It then started proceedings against Future Retail and appointed an IRP in the matter, the report mentioned. Bank of India had moved the insolvency petition against Future Retail on April 14 for its dues not being paid.

If you are curious to know about the backstory of the Amazon-Reliance-Future Retail battle, click here.

For more of such interesting and latest financial news, keep reading Indiatimes Worth. Click here