Adani and RIL bid for bankrupt Future Retail

Wednesday 16th November 2022 06:01 EST

Companies led by Mukesh Ambani and Gautam Adani have entered into the race to buy Future Retail, which is heavily indebted. April Moon Retail Private, a joint venture between Adani Airport Holdings and Flemingo Group, Reliance Retail Ventures, as well as 13 other firms have submitted expressions of interest (EOIs) for Future Retail.

The Future Group's flagship retail division, Future Retail, formerly the nation's second-largest retailer, had a deadline for EOI submissions earlier this month.

It was dragged into bankruptcy proceedings by banks after it defaulted on loans and its lenders rejected a $3.4-billion sale of its assets to market leader Reliance Industries amid a legal challenge by Amazon. The US e-commerce giant has accused Future of violating certain contracts by dealing with Reliance.

Other entities that have submitted EOIs include Shalimar Corporation, Nalwa Steel & Power, United Biotech, WHSmith Travel, Capri Global Holdings.

In August, 33 lenders collectively submitted loan claims totaling approximately $2. 6 billion as part of the ongoing insolvency process. Bank of India and State Bank of India are among the biggest lenders. Due to a lack of interest, Future Retail's RP had to extend the deadline for submitting EOIs, which had been set for October 20.

The final list of entities that have submitted the EOIs will be issued on November 20, following which they will be asked to submit a resolution plan by December 15.

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