Kishore Biyani, who had resigned as executive chairman and director of Future Retail in January, has now withdrawn the resignation following objections raised by the resolution professional, who wants the company’s directors to make good on the losses incurred by its lenders.
In a filing to exchanges on Wednesday, the company said the resolution professional had objected to the contents of the resignation letter written by Biyani and “requested him to recall his resignation letter.”
“... Kishore Biyani has now withdrawn his resignation..,” the company said.
Last Friday the resolution professional adjudicating on the bankruptcy proceedings of Future Retail, had filed an application before the Mumbai bench of the National Company Law Tribunal. In his plea against current and former directors of Future Retail, the resolution professional stated that potential losses of Rs 14,809 crore had been caused to the lenders of the company, and sought directions that the directors should contribute such amount to Future Retail.
On January 23, while tendering his resignation, Biyani had stated he had “completed all the required handholding” within his capacity for the RP to take over control of the company and its assets. He said he had also completed the handover of all information and data available with the earlier management, and shared insights about the business and operations of the company as well as various hurdles faced by the management.
“I believe that me or the earlier management do not have anything more to share with you,” his letter had stated.
Bankruptcy proceedings against Future Retail commenced in July last year. With not enough applicants for the company, the timeline for completing the insolvency proceedings has been extended to April 16. A meeting of the creditors on February 24 noted that no resolution plans had been submitted on the designated date of February 20.
Another group company, Future Enterprises, is also undergoing bankruptcy proceedings, while lenders have also dragged Future Lifestyle Fashions to the NCLT for amounts due to them.