NewsCorporate ActionsFuture Enterprises Sets Record Date for Interim Distribution to NCD Holders Amid CIRPFuture Enterprises Sets Record Date for Interim Distribution to NCD Holders Amid CIRP
Future Enterprises Limited (FEL), under Corporate Insolvency Resolution Process (CIRP), has set August 1, 2025, as the record date for interim distribution to Non-Convertible Debenture (NCD) holders. This distribution, approved by NCLT on May 2, 2025, follows the sale of certain FEL assets for INR 508.00 crore. The distribution affects multiple NCD series issued through private placement and is subject to conditions including adherence to priority payments and potential reversal of excess distributions.
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Future Enterprises Limited (FEL), currently undergoing Corporate Insolvency Resolution Process (CIRP), has announced a significant development for its Non-Convertible Debenture (NCD) holders. The company has set August 1, 2025, as the record date for interim distribution to NCD holders, marking a crucial step in its ongoing insolvency proceedings.
Key Details of the Interim Distribution
- Record Date: August 1, 2025 (Friday)
- Purpose: To determine eligibility of NCD holders for interim distribution
- Process: Part of the Corporate Insolvency Resolution Process (CIRP)
- Regulatory Compliance: Intimation made under Regulation 60 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
Background of the CIRP
Future Enterprises has been undergoing CIRP since February 27, 2023, following an order by the National Company Law Tribunal (NCLT), Mumbai Bench III. Mr. Avil Menezes has been appointed as the Resolution Professional (RP) to oversee the process.
Asset Sale and Distribution
The RP initiated a sale of certain FEL assets under Regulation 29 of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. This sale resulted in proceeds of INR 508.00 crore, which the Committee of Creditors (CoC) approved for interim distribution among creditors.
NCLT Order and Distribution Conditions
On May 2, 2025, the NCLT approved the interim distribution, subject to the following conditions:
- Distribution must adhere to mandatory priority payments as per Section 53 of the Insolvency and Bankruptcy Code.
- The distribution is interim and subject to final entitlements under either Section 30 (resolution plan) or Section 53 (liquidation).
- Any excess distribution will be subject to reversal.
Affected NCD Series
The interim distribution affects NCDs issued through private placement across multiple 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) acts as the Debenture Trustee for these NCDs.
This development represents a significant step in Future Enterprises' insolvency proceedings, providing a framework for the interim distribution of funds to NCD holders while the CIRP continues. NCD holders are advised to take note of the record date to ensure their eligibility for the interim distribution.
Historical Stock Returns for Future Enterprises
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +2.27% | +12.50% | -4.26% | -25.00% | -39.19% | -40.00% |
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