The National Company Law Tribunal’s (NCLT) decision to allow the liquidation of the Kishore Biyani-promoted Future Retail Ltd (FRL) adds a fresh twist to a long tale. It comes because no resolution plan was approved by the lenders. In April 2022, the committee of creditors, led by Bank of India, filed an insolvency application against the company. In July of the same year, NCLT admitted Future Retail under insolvency.
The company has a debt of more than Rs 17,000 crore that needs to be repaid to its operational and financial creditors. What happens next and who will get how much are among the big questions. According to Avanti T. Chandele, Partner at Mind Legal, the Insolvency and Bankruptcy Code (IBC) mandates that costs associated…
