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Ambani, Adani Among 13 Suitors Keen On Future Retail's Assets Under IBC

The insolvency proceedings against Future Retail require potential bidders to submit a final resolution plan by Dec. 6

<div class="paragraphs"><p>A man walks past Future Retail's closed Big Bazaar retail store in Ahmedabad, India. (Source: Reuters)</p></div>
A man walks past Future Retail's closed Big Bazaar retail store in Ahmedabad, India. (Source: Reuters)

Future Retail Ltd. received 13 expressions of interest, according to a provisional list released on the retail major’s website. 

Among the prospective bidders is April Moon Retail Pvt. Ltd. — which is a joint venture between Adani Airport Holdings Ltd. and Flemingo Group. Adani Airport holds 74% stake in April Moon Retail.

Mukesh Ambani’s Reliance Retail Ventures Ltd, which had previously entered a Rs 24,713 crore buyout deal with Future Retail, is also on the provisional list. 

The other bidders include Capri Global Holdings Pvt. Ltd. and Payard Investments Pvt. Ltd. Payard has entered into a consortium with U.S.-based liquidation and restructuring firm Gordon Brothers. 

The insolvency proceedings, which were initiated in July, require the potential bidders to submit a final resolution plan by Dec. 6. While this is an indicative date, financial creditors to Future Retail have the right to extend deadlines, if necessary.

According to the claims detailed on the company’s website, 34 financial creditors have verified claims worth Rs 19,225 crore against Future Retail.

Bank of New York Mellon with verified claims worth Rs 4,109 crore is the largest financial creditor to Future Retail, the claims data shows. Union Bank of India Ltd.’s Rs 1,894 crore of verified claims come in second.

Future Retail currently has access to 302 leased retail stores spread across 23 states and union territories, consisting of 30 large-format stores such as Big Bazaar and FBB stores and 272 small-format stores.

Disclaimer: Adani Enterprises is in the process of acquiring a 49% stake in Quintillion Business Media Ltd., the owner of BQ Prime.