Jindal (India) has proposed a bid of INR 301 crore for Future Enterprises (FEL), which is burdened with debt from Kishore Biyani. This amount represents less than 3% of the overall INR 12,265-crore loan exposure. According to individuals familiar with the process, this bid is considered nearly inconsequential to the lenders.
Although banks are currently examining the offer, the minimal bid allows little leeway for negotiation. According to sources, lenders will need to explore alternative avenues to ensure a substantial recovery from the account.
“The bid is so low that it is not even worth talking about,” said one of the persons cited above. “Though banks have not yet scrutinised the details of the bid, such a low value offer has left everyone disinterested. There is no point in even negotiating for a better value from the bidder, so other options will have to be considered,” said the person.
Jindal (India), a manufacturer of steel tubes and pipes based in Kolkata and affiliated with the BC Jindal Group, emerged as the exclusive bidder for FEL (Future Enterprises Limited) following a process that spanned over eight months, as reported on November 13.
Future Enterprises Limited (FEL) is indebted to creditors, primarily led by the Central Bank of India and its subsidiary Centbank Financial Services, with a total of INR 12,265 crore. This constitutes the second-largest debt burden among the now-defunct retail giant Future Group. Despite the surprise at the low valuation presented by Jindal, banks have a window of time available since the National Company Law Tribunal (NCLT) extended the resolution timeline for the company until March 2024. Lenders have indicated that they will evaluate their options in response to the underwhelming bid from Jindal.
