Kishore Biyani, the creator of retail companies such as Pantaloon Retail and Big Bazaar, has resigned as the executive chairman and director of debt-ridden Future Retail Ltd., the company said in a regulatory statement on Wednesday.
Future Retail Ltd (FRL)’s resolution professional received notification via email on January 24, 2023.
“This is to notify you that Mr Kishore Biyani has tendered a letter of resignation from the position of “Executive Chairman and Director” of the Company, effective January 23, 2023,” the company stated.
“Mr. Kishore Biyani’s resignation letter shall be placed before the Committee of Creditors in accordance with the Insolvency and Bankruptcy Code, 2016 read with the rules and regulations framed thereunder,” Future Retail stated.
Nothing in this document should be interpreted as an endorsement of the contents of Biyani’s resignation letter, including his arguments in the resignation letter regarding information transfer, the company told stock exchanges.
In an official letter to bankruptcy resolution specialist Vijaykumar Iyer, Biyani stated that he had continued to serve as chairman of the firm even after the beginning of the CIRP (Corporate Insolvency Resolution Process) and suspension of the Board.
“As I understand it, I have completed all the required handholding within my capacity for you to takeover the entire control of the company and its assets,” Biyani said.
He also stated that he had completed the transfer of all information and data that the previous management had access to or that could be obtained from ex-employees or other parties.
Biyani went on to say that he had also shared with the resolution professional all of his insights regarding the business and operations, as well as the many challenges that the previous management had experienced.
Kishore Biyani and 15 others, including FRL and Future Coupons Private Ltd. (FCPL), are entangled in a legal battle with Amazon, a stakeholder in FCPL, over the Reliance agreement.
After defaulting on its debts, FRL was put into insolvency proceedings by its lender, the Bank of India. Its lenders rejected Reliance’s buyout of the 19 Future Group firms, including FRL, for Rs.24,713 crore, citing Amazon’s legal challenge.