The Resolution Professional (RP) overseeing Future Retail Ltd’s Corporate Insolvency Resolution Process (CIRP) has submitted a request for an extension until September 15 to the National Company Law Tribunal (NCLT). The application, filed with the Mumbai NCLT bench, seeks to exclude a 29-day period from the CIRP timeline. This extension marks the third sought by Future Retail Ltd (FRL), which reportedly faces challenges in attracting a suitable buyer despite adjustments in bid conditions.
The regulatory filing clarifies that the RP of FRL has petitioned the NCLT for both the exclusion of the aforementioned period and a corresponding extension of the CIRP conclusion date from August 17, 2023, to September 15, 2023.
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The NCLT initiated the CIRP against FRL in July 2022 due to loan default. A 90-day extension was granted until July 15, 2023. Recently, another extension pushed the deadline to August 17, 2023, accounting for FRL’s request to exclude 33 days from the timeline. The Insolvency & Bankruptcy Code stipulates a 330-day limit for CIRP, encompassing litigation periods.
Section 12(1) of the Code mandates the completion of CIRP within 180 days from initiation, with NCLT empowered to grant a one-time extension of 90 days. The total permissible time, including extensions and litigation periods, is 330 days.
Despite receiving revised Expressions of Interest (EoIs) and dividing assets into clusters to attract fresh bids, FRL has encountered difficulties in garnering prospective buyers. The company’s debt of approximately ₹30,000 crore remains a challenging factor amidst the ongoing CIRP process. FRL had initially received six bids from potential buyers by the May 15 submission deadline, as outlined for the final list of ‘Eligible Prospective Resolution Applicants’.
