3 Future group firms to file claims before interim resolution professional

Three listed Future group firms will file their claims before the Interim Resolution Professional (IRP) of Future Retail (FRL), against which insolvency proceedings have been initiated by NCLT earlier this week.

The three companies — Future Consumer, Future Enterprises and Future Supply Chain Solutions — in their respective regulatory filings informed that they have significant amount of receivables from FRL against the transactions undertaken in the course of the business.

"With the initiation of the CIRP (Corporate Insolvency Resolution Process) in FRL, the company would be required to quantify its receivables and submit claim before the IRP as per the provisions and process prescribed under the code including applicable rules made thereunder," said the three Future Group companies in their respective filings on Thursday.

They would continue to take all appropriate steps in this matter, the filings added.

On July 20, the Mumbai bench of the National Company Law Tribunal (NCLT) ordered initiating insolvency resolution proceedings against the debt-ridden FRL and dismissed objections raised by e-commerce major Amazon.

NCLT has passed the order after allowing the petition filed by Bank of India (BoI) following loan defaults by FRL -- the flagship firm of the Kishore Biyani-led group.

Under the Insolvency & Bankruptcy Code, a company facing insolvency proceedings is protected under moratorium and during that period any recovery through suits, decree, arbitration etc. is prohibited.

"The order of moratorium shall have effect from the date of pronouncement of this order till the completion of the corporate insolvency resolution process or until this bench approves the resolution plan or passes an order for liquidation of the corporate debtor, as the case may be," NCLT had said in its order.