Bank of India (BoI) has taken Future Lifestyle Fashions (FLFL), controlled by Kishore Biyani, to the National Company Law Tribunal (NCLT) under the Insolvency and Bankruptcy Code (IBC) for recovery of dues.
FLFL, in its filing with the BSE, said that Saraf and Partners, advocates, on behalf of the BoI, filed a petition under Section 7 of the 2016 IBC.
The company is in the process of receiving legal advice on the matter.
Future Retail and Future Enterprises, both part of the group led by Biyani, are already in NCLT facing default cases.
Catalyst Trusteeship has already taken FLFL under IBC clause 7 to NCLT for claims worth Rs 451.98 crore. The petition is scheduled for hearing on Tuesday.
Another entity, Lotus Lifespaces LLP, has dragged the company into Section 9 of the IBC for claims worth Rs 150.37 crore. The hearing of the cases is scheduled for September 26. Both petitions have not yet been admitted by the NCLT.
Section 9 of the IBC empowers a company’s operating creditors to initiate corporate insolvency resolution proceedings in the event of default.
Operating creditors are those whose debt is owed on account of the rights derived from commercial transactions. This mainly includes claims for the delivery of goods or services and employment.
The entity controlled by Biyani said that, as part of the commercial revival, the Board has already started the monetization of the identified assets. The company was also in talks with lenders for its financial debt restructuring proposal. He would present the proposal in due course after obtaining the approval of the Board.
Under this situation, banks would have the option to evaluate and consider the proposal, he said.
Source: www.business-standard.com