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More trouble is building for Kishore Biyani as several Future Group companies have been dragged to the insolvency court by at least five operational creditors in the past three months over unpaid dues.
Court filings accessed by BusinessLine show that two companies — Schaefer Systems International Private Ltd and Fonty Supply Chain Solutions Pvt Ltd — approached the NCLT against Future Supply Chain Solutions Ltd (FSCSL) over unpaid dues in September and December, respectively. FSCSL, the logistics arm of the Future Group, owes Schaefer Systems International Private Ltd ₹2.23 crore.
Frigorifico Allana Pvt Ltd, the FMCG division of Allana Group of companies, dragged Future Consumer Ltd, the FMCG arm of the Future Group, to the NCLT in January.
Future Lifestyle Fashions Ltd, the flagship fashion business of the Future Group, has been hauled to the NCLT by Lovable Lingerie Ltd over unpaid dues.
In December 2020, Arneg India Pvt. Ltd, which designs, manufactures and installs equipment for the retail sector took Future Enterprises Ltd, the holding company of Future Group, to the NCLT for unpaid dues of over ₹5.76 crore.
All these companies have moved against Future Group firms under Section 9 of the Insolvency and Bankruptcy Act, 2016. This Section empowers a company’s operational creditor(s) to initiate corporate insolvency resolution process on default.
Liquidity woes
The Future Group has been facing liquidity issues since the Covid--led lockdown in March 2020. It had defaulted on interest payments on multiple occasions last year, after which promoter Kishore Biyani had to pledge more shares to the lenders.
Despite this, the company was unable to resurrect its financial condition. Eventually, in August, it had to sell its retail business’ assets to the Mukesh Ambani-led Reliance Industries Ltd for approximately ₹25,000 crore. But this is now in the Delhi High Court, which has stayed the deal based on a complaint by Amazon.
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