Prospective retail lenders select a resolution professional to pursue the business in bankruptcy court

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Future Retail lenders on Thursday night selected Deloitte India-backed Vijaykumar Iyer as interim resolution professional for sending the Kishore Biyani-promoted hypermarket chain to bankruptcy court, three people familiar with the development said.

The lenders will approach the Mumbai bench of the National Company Law Tribunal next week, seeking to take legal action against the retailer, they said.

It takes a minimum of six months to admit a company to collective proceedings, despite the 14-day ceiling provided by law. If the company is admitted by the NCLT, it will affect the ₹24,713 crore offer that Reliance Retail made in August 2020 to acquire the company Future Group. Plus, it will allow other potential buyers, like Amazon, to bid for the business. The Future-Reliance is stalled due to legal challenges posed by Amazon.

Meanwhile, IndusInd Bank last week canceled an agreement to sell Future Retail and Asian Hotel (North) loans to Edelweiss Asset Reconstruction Company without specifying a reason.

The bank had offered to sell ₹141 crore of Future Retail and ₹106 crore Asian Hotel (North) loans by the end of March under a 15:85 structure in which the ARC was to pay 15% upfront and the rest after recovering the money from the borrower.

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