Debt-ridden companies of the future face a second way to initiate insolvency
Indebted Future Enterprises Ltd is now facing a second plea filed by an operating creditor of the company in the National Company Law Tribunal to commence insolvency proceedings.
The latest petition is filed against Future Enterprises by Retail Detailz India, claiming default of Rs 4.02 crore before the Mumbai bench of the National Company Law Tribunal (NCLT).
“The company has received an electronic filing confirmation from NCLT regarding the filing of a claim by an operational creditor Retailz India Private under Section 9 of the IBC for an alleged default amount of Rs 4.02 crore” , Future Enterprises said in a late statement. evening deposit on Tuesday.
No other date has been set so far for the hearing of said motion, he added.
Last week, another operational creditor, Foresight Innovations, filed a claim under Section 9 of the Insolvency and Bankruptcy Code (IBC) 2016, for an alleged default amount of Rs 1.58 crore before the Mumbai bench of the NCLT.
The next hearing date for this motion is August 26, 2022.
Section 9 of the IBC empowers operational creditors of a business to initiate a process to resolve the insolvency of the business in the event of default.
Operational creditors are those whose debt is due in respect of royalties arising from commercial operations. This primarily includes requests for delivery of goods or services and employment.
Future Enterprises, which is part of the Future Group led by Kishore Biyani, faces difficulties like the other companies in the group.
On Tuesday, its non-executive director Chandrapraksh Toshniwal resigned from the board.
Future Enterprises was among 19 group companies operating in the retail, wholesale, logistics and warehousing segments to be transferred to Reliance Retail under a Rs 24,713 deal crore announced in August 2020.
The deal was canceled by billionaire Mukesh Ambani, led by Reliance Industries Ltd in April.
It had recently defaulted on several interest payments on its several non-convertible debentures.
NCLT has already initiated insolvency proceedings against Future Group’s flagship company, Future Retail Ltd.
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