NCLT orders Future Retail's liquidation as resolution bids with lenders failed

THE Mumbai bench of the National Company Law Tribunal (NCLT) has ordered liquidation of Future Retail as all the resolution bids have failed with the lenders after the committee of creditors led by Bank of India, opted for liquidation of the company that was once the poster boy of modern restock in the country.

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This will be a big blow to lenders as the company has negligible assets to be sold off and recover the dues. Most of the yielding stores were taken over by Reliance after its aborted bid d to buy the company out. Even through resolution banks were on average getting only about under a third of their dues so far and liquidation means at least 90% loss or hair cut as in the banking