Business Business: The sale of Kishore Biyani’s retail brand outlet Future Lifestyle Fashion Limited (FLFL) retail store seems to be in trouble. In fact, Spacemantra, the company that won the acquisition bid of FLFL, has withdrawn its resolution plan, leaving the lenders of the debtor company in a dilemma. Let us tell you that Future Lifestyle Fashion is a listed company. The price of this stock on the BSE index is Rs 2.32. The previous closing price of this stock was Rs 2.21. On Tuesday, the stock closed 4.98% up. At the same time, on Monday also the stock registered a strong gain of 5 per cent.
Let us tell you that after the company went bankrupt in May 2023, the winner was revealed after a process that lasted about 18 months. These buyers also included Spacemantra, a company promoted by Sandeep Gupta and Shalini Gupta along with former NBCC chairman Anoop Kumar Mittal.
Spacemantra offered ₹490 crore to beat Donair Industries’ initial interest. The company was to pay ₹490 crore within 90 days of NCLT approval. However, after creditors voted in favour of Spacemantra’s offer, the company’s consortium changed its mind. In a letter to Ravi Setia on September 25, the consortium said it was no longer interested in pursuing its resolution plan.
Future Lifestyle Fashions Ltd owes ₹3,478 crore to its creditors, including debtor holders. State Bank of India (SBI) is the lead lender with an exposure of ₹477 crore. Bondholders represented by Catalyst Trusteeship and Centbank Financial Services are owed about ₹1,100 crore.
