Central Bank of India Secures Stake in Future Enterprises' Insurance Ventures

The Central Bank of India has emerged as the successful bidder for Future Enterprises Ltd's stakes in two insurance companies. The bid follows insolvency proceedings against Future Enterprises, initiated by the National Company Law Tribunal. The acquisition marks a significant move in the debt resolution process for the troubled Future group.

In a significant development, the Central Bank of India has been declared the successful bidder for the stake acquisition of debt-ridden Future Enterprises Ltd (FEL) in its life and general insurance ventures.

The state-owned bank was named the winning 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, according to a regulatory filing.

A Letter of Intent dated August 20, 2024, has been received by the bank, confirming this advancement.

Future Enterprises currently holds a 25 percent stake in Future Generali India Insurance Company and a 33 percent stake in Future Generali India Life Insurance.

Notably, the Mumbai bench of the National Company Law Tribunal (NCLT) ordered insolvency resolution proceedings against FEL on July 20, 2022, following loan defaults by Future Retail Ltd (FRL), a key firm in the Kishore Biyani-led group, and dismissed objections from e-commerce giant Amazon.

The proceedings are conducted under the Insolvency & Bankruptcy Code, which protects the company under a moratorium prohibiting recoveries via suits, decrees, or arbitration.

The Future group has faced significant financial challenges after its Rs 24,713-crore deal to sell its retail, wholesale, logistics, and warehousing assets to Reliance Industries Ltd fell through in April due to lack of lenders' support.

(With inputs from agencies.)