Future Enterprises Ltd (FEL) said it is exploring all legal options after a Mumbai court’s order restrained it from selling stake in its general insurance joint venture. The order will also not have an immediate impact on the transaction. “The petitioner has intentionally not given any notice to FEL, otherwise FEL would have explained to the court that it has no direct liability to IDBI,” it has said in a stock exchange filing. FEL is exploring all options to vacate this ex parte order valid March 10, it added. “This ex parte order does not immediately affect the transaction between FEL and Generali as the closing date under the transaction document is not due for sometime,” it further said. IDBI Trusteeship went to court on behalf of certain foreign bondholders of Future Enterprises companies that had defaulted.
“An ex parte order was passed by the City Civil Court, Bombay on February 25, 2022 and received by Company together with a notice of motion on February 28, 2022, restraining Future Enterprises Limited (FEL) from selling its stake in Future Generali India Insurance Company Limited (Future Generali),” FEL said.
In January this year, cash strapped Future Enterprises had signed an agreement to sell 25 per cent stake in Future Generali India Insurance to Generali Participations Netherlands NV for a cash consideration of ₹ 1,252.96 crore, along with an additional consideration that is linked to the date of the closing of the transaction.