Central Bank wins bid to take stake in Future’s insurance ventures

Future’s insurance ventures: The Central Bank of India has been announced as the successful bidder in relation to taking up of stake in debt-ridden Future Enterprises Ltd (FEL) for life and general insurance businesses.

A regulatory filing by the state-owned bank revealed that it had been declared as the successful bidder by the Committee of Creditors (CoC) for the sale of Category 1 assets of FEL in Future Generali India Life Insurance Company Limited and Future Generali India Insurance Company Limited. In confirmation, the bank received a formal notice dated 20 August 2024 indicating its winning offer.

Future Enterprises currently owns a quarter interest in Future Generali India Insurance Company and a third interest in Future Generali Life Insurance.

On July 20, 2022, following loan defaults by Kishore Biyani-led group’s flagship firm, Bank of India (BoI) filed an insolvency petition against FEL at the Mumbai bench of the National Company Law Tribunal (NCLT). This order was given despite the objections by e-commerce giant Amazon.

During the moratorium period under Insolvency & Bankruptcy Code, such entities are prohibited from recovering via legal action, order or award during moratorium period under Insolvency & Bankruptcy Code.

The Future group has been facing a financial crisis since August 2020 after its Rs 24,713 crore deal to exit its retail, wholesale, logistics, and warehousing assets to Reliance Industries could not happen. 

Reliance called off the deal in April after it failed to get lenders’ support. 

(With PTI inputs)