Lenders backing Kishore Biyani‘s Future Supply Chain Solutions have been granted a 45-day extension to finalize the corporate insolvency resolution process (CIRP), allowing them to review bids from Reliance Retail Ventures and Tatkal Loan India.
On Friday, the resolution professional of the BSE-listed Future Supply Chain Solutions, Rajan Rawat, sought an extension of 45 days, pleading that two prospective resolution applicants have submitted their bids and lenders have already requested them to increase the value of their plans.
“These plans are under active consideration and lenders are already in talks with the bidders to maximise the value,” the resolution professional argued through his lawyer.
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The division bench of judicial member Lakshmi Gurung and technical member Charanjeet Singh Gulati allowed the request in an oral order. The detailed order was awaited.
Initially, besides Reliance Retail Ventures and Tatkal Loan India, additional bidders including One City Infrastructure, Globe Ecologistics, Shanti G.D. Ispat & Power, Camions Logistics Solutions, and Sugna Metals had expressed interest in acquiring the company through the bankruptcy proceedings.
“The Insolvency and Bankruptcy Code provides for an overall time limit of 330 days for completion of CIRP,” said Himanshu Vidhani, partner at law firm Chandhiok & Mahajan. “However, the courts, in exceptional circumstances, have extended the time limit beyond 330 days also.”
On January 5th of last year, the company entered into the Corporate Insolvency Resolution Process (CIRP) after an application was filed by its operational creditor, DHL E-Commerce (India) Pvt Ltd, due to a default on dues amounting to approximately INR 7.26 crore. The total admitted liabilities of the company stand at INR 885 crore. Major creditors of the bankrupt company include Azim Premji Trust (INR 274 crore), DFC First Bank (INR 158 crore), JC Flowers Asset Reconstruction (INR 63 crore), and State Bank of India (INR 45 crore).
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