Indian lender initiates bankruptcy process against Future's fashion unit

Future Lifestyle Fashions

29/08/2022 16:50

NEW DELHI, Aug 29 (Reuters) - A lead lender to India's
Future Lifestyle  FLFL.NS  has dragged the fashion retailer to
bankruptcy, the company told the stock exchange on Monday,
adding that it was seeking legal advice on the matter. 
    Future Lifestyle said in a statement that State-run Bank of
India  BOI.NS  has initiated legal proceedings under the
country's Insolvency and Bankruptcy Code.
    Part of debt-ridden Future Group, the fashion retailer,
which operates clothing stores under  "Central" and "Brand
Factory" brands, said is was already in discussions with
creditors over its debt restructuring proposal and has
identified assets for sale to raise money. 
    Future Group's flagship retail unit, Future Retail  FRTL.NS 
- once the country's second-largest retailer, is already in
bankruptcy proceedings after it defaulted on loans and its
lenders rejected a $3.4 billion sale of its assets to market
leader Reliance Industries  RELI.NS .  urn:newsml:reuters.com:*:nL1N2ZY18P

 (Reporting by Aditi Shah
Editing by Tomasz Janowski)
 ((aditi.shah@tr.com; +91-11-4954 8023, +91-11-3015 8023;
Reuters Messaging: twitter: @aditishahsays))