In a move that Could add to Kishore Biyani's woes, a group of lenders, led by Bank of India, have decided to refer Future Retail Ltd to the National Company Law Tribunal (NCLT) for insolvency proceedings over recovery of dues.
The lenders have invited financial and technical bids from insolvency professionals (IPs) by March 29, according to a report by The Economic Times.
Grant Thornton, PwC, Alvarez & Marsal, KPMG, BDO India, EY and Deloitte are likely to bid for the mandate, a source told the publication.
This could further hinder the sale of retail assets to a unit of Reliance Industries Ltd.
The news comes just days after CSB Bank approached the Debt Recovery Tribunal (DRT) to seek payment of over Rs 2.5 crore in unsecured debt from Future Retail Ltd and Future Enterprises.
According to the report, the banks will also pursue recovery under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (Sarfaesi) Act, which allows lenders to auction mortgaged properties.
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Published 29 March 2022, 05:06 IST