Future Enterprises gets bids for manufacturing units, insurance biz
Central Bank of India and Mumbai-based M Pallonji & Co are the two bidders for Future Enterprises' insurance business, having offered ₹450 crore and ₹300 crore, respectively, two people familiar with the process said. Two other bidders have offered to buy the company's manufacturing units in Maharashtra and Karnataka, these people said.
Lenders had offered different parts of the company for sale after the initial attempt to sell the whole company failed to get substantial bids.
Future Enterprises owes creditors more than ₹13,540 crore. Central Bank is also the largest creditor to the group with more than ₹4,000 crore of admitted claims between the bank and its arm Centbank Financial Services.
The insolvency and bankruptcy code (IBC) also allows creditors to submit a takeover plan.
«The bids came earlier this month and are yet to be opened, but prima facie they look a little weak given the huge amount of dues the company owes creditors. Lenders will meet to decide on the next course of action,» said one of the persons cited above. All bidders have paid ₹1 crore each as earnest money.
Lenders are not in a hurry because they have time until the first week of May to complete the process and can also seek an extension of the timeline with the NCLT. Metal company Orissa Metaliks and Mumbai-based financial services company Uniworth Finlease have sought to buy two manufacturing units at Tarapur-Palghar in Maharashtra and Mahadevapura-Bengaluru in Karnataka for ₹30 crore and ₹15 crore, respectively.
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