The bankruptcy court in Mumbai approved Reliance Retail Ventures Ltd’s (RRVL) resolution plan for Kishore Biyani-promoted Future Supply Chain Solutions Ltd (FSCSL), paving the way for the logistics arm of the erstwhile Future Group to formally join the Reliance stable.
Before the tribunal’s approval, the secured lenders of the company had approved the revival plan submitted by Mukesh Ambani-promoted RRVL, with 91.71% voting in its favour.
The successful revival plan proposes to pay Rs 170 crore to acquire the company. The bankrupt company’s major secured creditors include Azim Premji Trust, State Bank of India, IDFC First Bank and JC Flowers Asset Reconstruction, which claimed dues of over Rs 485 crore. As per the latest available data with the Insolvency & Bankruptcy Board of India (IBBI), the company’s total admitted claim stood at Rs 885 crore.
“Approval of the resolution plan shall not be a ground for termination of any existing consents, approvals, licences, concessions, authorisations, permits or the like that has been granted to the corporate debtor...,” observed the division bench of judicial member Lakshmi Gurung and technical member, Hariharan Neelakanta Iyer, “...or for which the said corporate debtor has made an application for renewal, grant permissions, sanctions, consents, approvals, allowances, exemptions, etc.,” said the tribunal in its 36-page order.
Before the tribunal’s approval, resolution professional Rajan Rawat, had informed the tribunal that out of seven bidders, two had submitted the resolution plan, through counsel Nausher Kohli. Later, one plan was withdrawn with the approval of CoC (committee of creditors) in its meeting held on April 18, 2024, and only one plan submitted by Reliance Retail Ventures was left with CoC.
Originally, besides Reliance Retail Ventures and Tatkal Loan India, other bidders such as One City Infrastructure, Globe Ecologistics, Shanti G.D. Ispat & Power, Camions Logistics Solutions and Sugna Metals had shown interest in acquiring the company through the bankruptcy process.
In January 2023, the company was admitted under the Corporate Insolvency Resolution Process (CIRP) in an application filed by DHL Ecommerce (India) Pvt Ltd after the company defaulted on its dues of about Rs 7.26 crore.
Mumbai-based Future Supply Chain Solutions is the country’s first fully integrated and IT-enabled end-to-end supply chain and logistics company, with capabilities in handling modern warehousing, express logistics, cold chain and e-commerce logistics.
The company provides third-party logistics support to companies in sectors such as food and beverages, lifestyle, consumer electronics, automotive, engineering, home and furniture, healthcare, general merchandise and e-commerce.
Before the tribunal’s approval, the secured lenders of the company had approved the revival plan submitted by Mukesh Ambani-promoted RRVL, with 91.71% voting in its favour.
The successful revival plan proposes to pay Rs 170 crore to acquire the company. The bankrupt company’s major secured creditors include Azim Premji Trust, State Bank of India, IDFC First Bank and JC Flowers Asset Reconstruction, which claimed dues of over Rs 485 crore. As per the latest available data with the Insolvency & Bankruptcy Board of India (IBBI), the company’s total admitted claim stood at Rs 885 crore.
“Approval of the resolution plan shall not be a ground for termination of any existing consents, approvals, licences, concessions, authorisations, permits or the like that has been granted to the corporate debtor...,” observed the division bench of judicial member Lakshmi Gurung and technical member, Hariharan Neelakanta Iyer, “...or for which the said corporate debtor has made an application for renewal, grant permissions, sanctions, consents, approvals, allowances, exemptions, etc.,” said the tribunal in its 36-page order.
Before the tribunal’s approval, resolution professional Rajan Rawat, had informed the tribunal that out of seven bidders, two had submitted the resolution plan, through counsel Nausher Kohli. Later, one plan was withdrawn with the approval of CoC (committee of creditors) in its meeting held on April 18, 2024, and only one plan submitted by Reliance Retail Ventures was left with CoC.
Originally, besides Reliance Retail Ventures and Tatkal Loan India, other bidders such as One City Infrastructure, Globe Ecologistics, Shanti G.D. Ispat & Power, Camions Logistics Solutions and Sugna Metals had shown interest in acquiring the company through the bankruptcy process.
In January 2023, the company was admitted under the Corporate Insolvency Resolution Process (CIRP) in an application filed by DHL Ecommerce (India) Pvt Ltd after the company defaulted on its dues of about Rs 7.26 crore.
Mumbai-based Future Supply Chain Solutions is the country’s first fully integrated and IT-enabled end-to-end supply chain and logistics company, with capabilities in handling modern warehousing, express logistics, cold chain and e-commerce logistics.
The company provides third-party logistics support to companies in sectors such as food and beverages, lifestyle, consumer electronics, automotive, engineering, home and furniture, healthcare, general merchandise and e-commerce.
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