The Future Group companies are Precision Realty Developers and Future
.
L&T Finance sold the portfolio of four accounts for ₹980 crore, equating to a recovery of nearly 66%, the people cited above said. The other two accounts are C&C Construction, an engineering, procurement and construction company, and Sky One Corporate Park, a realty developer.
L&T Finance and Phoenix ARC did not respond to ET’s request for comments.
Future Entertainment houses apparel brands such as Buffalo, Spunk and AFL.
“Since L&T Finance was the sole lender (to Future Entertainment), it made the deal attractive for the ARC,” said one of the two people cited above. As a sole lender, the acquirer can control the recovery process.
Future Entertainment is a subsidiary of Future Corporate Resources, the holding company of founder promoter Kishore Biyani and his family. Biyani is in talks with domestic lenders for an out-of-court restructuring of loans for and Future Lifestyle and Fashion Ltd, as reported by ET on July 9.
The bankruptcy court has reserved an order for admission of Biyani’s flagship company
, which operates large format stores, for insolvency proceedings.
Precision Realty is the company that provides infrastructure support to the stores that Future Retail operates. However, the security value of Precision Realty has diminished after
took control of nearly 950 Future Retail stores in March this year due to non-payment of rentals.
L&T sold 339 crore outstanding loans of Future Entertainment and 111 crore Precision Realty’s loans, the first person cited above said. The other loan accounts include a 405 crore C&C Construction loan and 615 crore Sky One Corporate Park loan, the same person said.
The deal was sealed last month under the 15:85 structure, wherein 15% of the consideration is paid up front, and 85% is paid in the form of security receipts (SR) to be re deemed when the ARC recovers money from defaulting borrowers.