According to reports, Kishore Biyani, the founder of Future Group, has put forth an intriguing proposition to settle the Rs 571-crore debt owed by Bansi Mall Management, the entity that owns SOBO Central Mall in Mumbai’s Haji Ali. Biyani’s offer amounts to Rs 476 crore, aimed at reaching a one-time settlement with a consortium of lenders led by Canara Bank.
This development comes amidst a surprising turn of events, as Biyani’s proposal emerges subsequent to creditors allegedly greenlighting a bid of Rs 475 crore from the Runwal Group for the acquisition of the asset.
As per a detailed report by The Economic Times, the recent developments surrounding SOBO Central Mall have taken an intriguing turn. After the lenders were presented with Runwal Group’s bid of Rs 475 crore to acquire the mall earlier this month, Kishore Biyani, the founder of Future Group, took a bold step by approaching the debts recovery tribunal (DRT) to challenge the decision. Biyani’s proactive approach didn’t stop there; he further engaged directly with the lenders and escalated the matter to the court in an effort to outbid Runwal Group’s offer. Notably, Runwal Group has already deposited 10 percent of the bid amount, adding a layer of complexity to the situation.
Amidst this legal tug-of-war, the lenders find themselves in a state of anticipation, eagerly awaiting the court’s verdict. The hearing for this high-stakes dispute is scheduled for later this month, promising to bring about significant ramifications for the future ownership of SOBO Central Mall.
SOBO Central Mall, a venerable landmark in Mumbai, has stood the test of time since its inauguration in 1999, albeit with challenges. With only a McDonald’s outlet to its name, the mall boasts a leasable area of 150,000 square feet, making it one of the city’s oldest shopping destinations. However, the onslaught of the COVID-19 pandemic, the emergence of new retail hubs within the city, and the allocation of prime real estate to other struggling Future Group entities have all contributed to the mall’s recent struggles.
In a separate yet related development, Jindal (India) emerged as the sole bidder for Kishore Biyani’s Future Enterprises Limited (FEL) last year. Despite initial interest from prominent players like Reliance Retail, which had sought an extension until October 30 to finalize their bid, Jindal’s proposal emerged as the only one submitted to the creditors within the stipulated deadline.
The Corporate Insolvency Resolution Process (CIRP) initiated against Future Group last year stemmed from the company’s inability to meet its loan obligations, accumulating a staggering debt of Rs 12,265 crore owed to creditors. As the legal battles unfold and the fate of SOBO Central Mall hangs in the balance, the outcomes of these proceedings are poised to reshape the landscape of Mumbai’s retail sector and the Future Group’s fortunes.
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