Lenders weigh legal action over takeover of 947 Future Retail store by Reliance Lenders will soon initiate insolvency proceedings against Future Enterprises Ltd (FEL), the linchpin company of Future Group, which manufactures, designs, procures and distributes fashion apparel for the group companies, the Economic Times of India reported. The collapse of the Rs 24712 crore deal with Reliance Industries and defaults on a series of payments to lenders in the last week of March as per the terms of one-time restructuring (OTR) prompted lenders to pursue insolvency proceedings.

Private sector lender Yes Bank Ltd has moved National Company Law Tribunal (NCLT) seeking initiation of insolvency proceedings against Zee Learn, according to a regulatory filing, the Economic Times of India reported. The company said that Yes Bank Ltd has allegedly claimed that the total amount in default with respect to a financial facility is Rs 468 crore. Zee Learn has received a notice from the Mumbai bench of the NCLT over Yes Bank's petition and is in the process of compiling information to verify the facts, the filing said on Monday.

India's top retailer Reliance on Saturday called off its $3.4 billion deal with Future Group, saying it "cannot be implemented" after Future's secured creditors rejected it, Reuters reported. The deal was at the centre of legal battles since 2020 after Future's partner Amazon.com Inc legally blocked it, citing violation of certain contracts. Future denied any wrongdoing. In a stock exchange filing on Saturday, Reliance said the deal now cannot go through as "the secured creditors of FRL (Future Retail) have voted against" it.

Debt-ridden Supertech Ltd, which is facing insolvency proceedings, should come up with a settlement plan that entails "definite upfront payment" of dues, according to one of its lender Union Bank of India, the Economic Times of India reported. The bank on whose application the National Company Law Tribunal (NCLT) decided to initiate insolvency resolution proceedings against Supertech Ltd has made the submissions before appellate tribunal NCLAT.

Differing views between two departments of the Indian government have turned one of the biggest sales of steel mills under the reformed bankruptcy law into a litigation worth $6.3 billion and delayed the entire process. “You purchased a litigation that costs 480 billion rupees,” India’s Chief Justice N.V. Ramana told the lawyer for tycoon Sajjan Jindal-led JSW Steel Ltd.. The top court gave another week to government’s lawyer to sort out the differences between the country’s anti-money laundering agency Enforcement Directorate and corporate affairs ministry.

Nearly half of the 3,247 insolvency cases have been resolved through liquidation, and only a paltry 457 or 14 per cent of them through asset sale as per their lenders-approved resolution plans, a report said on Friday, the Economic Times of India/em> reported. Even the various resolution processes have witnessed the recovery of debt of just 31 per cent on an average, said the data from the Insolvency & Bankruptcy Board of India.

Bank of India has filed an insolvency petition against Future Retail Ltd (FRL) at the bankruptcy court for non-payment of dues, the retailer said in a notice issued to stock exchanges on Thursday evening, the Economic Times of India reported. The company said it defaulted on payment of monies due in terms of framework agreement it entered with the bank. The decision of lenders to file an application with National Company Law Tribunal (NCLT) will have a bearing on the Rs 24,713-crore offer that Reliance Industries-linked entities made to acquire Future Group companies in August 2020.

The Indian government on Friday said that it has amended the insolvency laws pertaining to voluntary liquidation to speed up the process, the Times of India reported. The laws on voluntary liquidation are part of the ones aimed at improving ease-of-doing business by allowing a smooth exit for firms. A statement from the government said that the Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) (Amendment) Regulations, 2022 were notified on April 5, 2022. The law was introduced to provide a mechanism for voluntary liquidation of a solvent corporate person.

The Delhi bench of the National Company Law Tribunal has initiated bankruptcy proceedings against Anand Divine Developers pvt ltd, a group company of realty developer ATS over dues of Rs 25 crore, the Economic Times of India reported. According to the NCLT order, ICICI prudential venture has moved the tribunal after the developer defaulted on payment. “In the present case, the corporate debtor has not filed any reply and written submissions till now.