News Corporate Actions Future Enterprises Sets August 1 Record Date for ₹508 Crore Interim DistributionFuture Enterprises Sets August 1 Record Date for ₹508 Crore Interim Distribution
Future Enterprises Limited (FEL), under Corporate Insolvency Resolution Process, has set August 1, 2025, as the record date for an interim distribution of ₹508.00 crore to debenture holders. The funds, generated from asset sales, will be distributed to holders of Non-Convertible Debentures across four series. The National Company Law Tribunal approved this distribution on May 2, 2025, subject to conditions including mandatory priority payments and potential adjustments based on the final resolution.
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Future Enterprises Limited (FEL), currently undergoing Corporate Insolvency Resolution Process (CIRP), has announced a significant development for its debenture holders. The company has set August 1, 2025, as the record date for an interim distribution of ₹508.00 crore, generated from asset sales under the supervision of Resolution Professional Avil Menezes.
Key Details of the Interim Distribution
- Record Date: August 1, 2025 (Friday)
- Distribution Amount: ₹508.00 crore
- Source of Funds: Proceeds from the sale of certain FEL assets
- Approval: National Company Law Tribunal (NCLT) on May 2, 2025
Debentures Covered in the Distribution
The interim distribution covers Non-Convertible Debentures (NCDs) across four series:
| Series | ISINs |
|---|---|
| XV | INE623B07453, INE623B07479, INE623B07438, INE623B07412 |
| XVII | INE623B07545, INE623B07552, INE623B07560, INE623B07578, INE623B07586 |
| XVIII | INE623B07594, INE623B07602, INE623B07610 |
| XX | INE623B07644, INE623B07651, INE623B07669 |
Axis Trustee Services Limited (ATSL) serves as the debenture trustee for these NCDs.
CIRP Background and Distribution Process
Future Enterprises Limited has been under CIRP since February 27, 2023, following an order by the NCLT Mumbai Bench III. The Resolution Professional initiated the asset sale process under Regulation 29 of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016.
The Committee of Creditors (CoC) approved both the sale and the interim distribution of the proceeds. Subsequently, the RP filed an Interlocutory Application (I.A. 5888 of 2024) with the NCLT, seeking directions for the interim distribution.
NCLT Order and Distribution Conditions
The NCLT's order on May 2, 2025, allowed the interim distribution subject to the following conditions:
- The distribution is subject to mandatory priority payments as per Section 53 of the Insolvency and Bankruptcy Code.
- It is considered interim in nature and subject to final entitlement of creditors under either Section 30 (in case of a resolution plan) or Section 53 (in case of liquidation).
- Any excess distribution, if made, shall be reversed accordingly.
Implications for Debenture Holders
This interim distribution represents a significant development for FEL's debenture holders, who may receive partial recovery of their investments. However, it's important to note that the distribution is subject to the conditions set by the NCLT and the final resolution of the CIRP process.
The company has made this announcement in compliance with Regulation 60 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Debenture holders are advised to take note of the record date and await further communications regarding the distribution process.
Historical Stock Returns for Future Enterprises
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +2.17% | +4.44% | 0.0% | -18.97% | -18.97% | -37.33% |
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