The National Company Law Tribunal (NCLT) has granted a 90-day extension to Future Retail for concluding its insolvency proceedings. The extension comes after Future Retail sought more time to resolve its debt issues and reach a resolution plan with its creditors.
The NCLT had previously granted Future Retail a 180-day moratorium period to resolve its debt issues, which ended on March 31, 2022. However, the company was unable to finalize a resolution plan with its creditors within the given timeframe.
With the 90-day extension, Future Retail now has until June 29, 2022, to finalize its resolution plan and exit the insolvency process. The company has been in financial distress due to the impact of the COVID-19 pandemic and its ongoing legal battle with e-commerce giant Amazon.
Future Retail is one of India's largest retail chains, with over 1,500 stores across the country. The company has been in financial trouble since last year, when its debt levels soared and it faced a cash crunch due to the pandemic.
The insolvency proceedings were initiated by its creditors, who sought to recover their dues from the company. Future Retail has been in talks with various potential investors, including the Reliance Group, for a possible resolution plan.
The NCLT's decision to grant a 90-day extension to Future Retail is expected to provide the company with more time to resolve its debt issues and reach a resolution plan with its creditors. It is also likely to provide some relief to the company's employees and suppliers, who have been impacted by the ongoing insolvency proceedings.
In conclusion, the NCLT has granted a 90-day extension to Future Retail for concluding its insolvency proceedings, giving the company more time to resolve its debt issues and reach a resolution plan with its creditors. The decision is expected to provide some relief to the company's employees and suppliers, and help Future Retail emerge from the insolvency process.
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