Future Retail, once the crown jewel of Kishore Biyani-led Future Group, is now heading for liquidation as its lenders could not get any reasonable buyer for the debt-ridden firm.

As the Committee of Creditors (CoC) rejected the sole resolution plan submitted by Space Mantra after four extensions in the deadline to complete the corporate insolvency resolution process (CIRP), the RP of the company has now approached NCLT to initiate liquidation of Future Retail (FRL).

“The resolution plan submitted by Space Mantra Private has not been approved by the CoC of FRL... the Resolution Professional (RP) has filed an application before the National Company Law Tribunal, Mumbai Bench, for initiation of liquidation of FRL,” said a regulatory filing from FRL.

Last month FRL had informed that a Rs 550-crore bid submitted by Space Mantra for FRL had failed to get the required number of votes in the e-voting process of the CoC.

The NCLT had granted four extensions to FRL for completion of the CIRP and the last date was September 30. After that there was no extension in the deadline. The insolvency proceedings against FRL were started by the tribunal on July 20, 2022.

The Insolvency & Bankruptcy Code (IBC) mandates the completion of CIRP within 330 days, which includes time taken during litigations.

Under Section 12 (1) of the Code, the CIRP shall be completed within a period of 180 days from the date of initiation.