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Future Retail tanks 4.5% after resolution professional moves NCLT against Kishore Biyani for alleged fraud

Future Retail tanks 4.5% after resolution professional moves NCLT against Kishore Biyani for alleged fraud

18 Aug, 2023

Future Retail stock has fallen 26 percent since January 1 and has lost 55 percent since insolvency proceedings started in July 2022.

Future Retail share price fell 4.48 percent to Rs 3.2 at 9.20 am after the company’s insolvency resolution professional filed an application before the NCLT against Kishore Biyani and his eight brothers, alleging involvement in fraudulent transactions. The fraudulent transactions are estimated at Rs 40.53 lakh, the company said in an exchange filing dated August 17.

Future Retail's stock has fallen 26 percent since January 1 and has lost 55 percent since insolvency proceedings started in July 2022.

Future Retail approached the NCLT for extension till September 15 to complete its Corporate Insolvency Resolution Process (CIRP). The resolution professional of the debt-ridden firm filed an application before the NCLT Mumbai, “seeking exclusion of a period of 29 days from CIRP of FRL, and consequent extension from August 17, 2023 to September 15, 2023, for concluding the CIRP,” the company said in an exchange filing dated August 16.

If approved, this would be the third extension given to the company. Last month, NCLT had extended the deadline to August 17.

Insolvency process was initiated against Future Retail in July 2022 by the NCLT after a loan default. The total debt of Future Retail stands at Rs 30,000 crore.

The firm had received six bids from prospective buyers on the last day of submission of resolution plans in May.

The company's store networks are operated under various brand names, including Big Bazaar, easyday, fbb, and Foodhall. The company focuses on the hypermarket, supermarket, and home solutions segment. It is engaged in retail business and generates its entire revenue from retail trade.

Source: https://shorturl.at/gsDIP

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