Space Mantra: Future Retail lenders reject proposal, NCLT extends bankruptcy period by 15 days

Future Retail Limited is currently going through the Corporate Insolvency Resolution Process (CIRP). Lenders to Future Retail Ltd rejected the bid submitted by Space Mantra. Space Mantra failed to get majority in the e-voting process of the Committee of Creditors (CoC). The proposal was presented before the COC in July this year.

NCLT accepts Space Mantra’s request

Future Retail Ltd FRL said the resolution plan submitted by Space Mantra has not been approved by the CoC. Now action will be taken under the Insolvency and Bankruptcy Code 2016. Space Mantra had offered around Rs 550 crore, which was very close to the liquidation value. FRL said the National Company Law Tribunal (NCLT) has accepted Space Mantra’s request and extended the deadline for completing the CIRP by 15 days.

Former promoter approached Bombay High Court

According to the information, the Insolvency and Bankruptcy Code (IBC) mandates completion of CIRP within 330 days. This also includes the time of litigation. Former Future Retail promoter Kishore Biyani has approached the Bombay High Court against the forensic audit process of the company.