Future Retail resolution professional pushes for new bidding round; lenders reject proposal

economictimes.indiatimes.com:

Vijaykumar Iyer sought a fresh opportunity to seek new bids for Future Retail, springing a surprise for the lenders that rejected Space Mantra's ₹550-crore buyout offer Saturday evening, people aware of the development told ET. Instantly and unanimously, lenders rejected his proposal to restart the process, the people said.

Kishore Biyani-promoted Future Retail, which is undergoing a corporate insolvency process, received only one eligible resolution plan from Space Mantra even as large conglomerates such as Adani Group and Reliance Industries had made expressions of interest.

«After the voting lines closed at 9.00 pm Saturday, the resolution professional conducted a virtual meeting with lenders and insisted that the process to find a buyer should be restarted,» said one of the persons cited above.

«Lenders rejected his proposal as they believe it would be a waste of time. There is no certainty that they would receive improved offers during the re-run of the process,» the same person said.

The RP did not respond to ET's request for comments.

«Although the RP did not immediately release the voting results, it was clear from day one that most lenders are voting against the plan,» said a senior bank official.