Indian lender launches bankruptcy proceedings against Future’s fashion unit

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NEW DELHI, Aug 29 (Reuters) – A senior India Future Lifestyle lender (FLFL.NS) has dragged the fashion retailer into bankruptcy, the company told the stock exchange on Monday, adding it was seeking legal advice On the question.

Future Lifestyle said in a statement that the state-run Bank of India (BOI.NS) had taken legal action under the country’s Insolvency and Bankruptcy Code.

Part of the debt-ridden Future Group, the fashion retailer, which operates clothing stores under the ‘Central’ and ‘Brand Factory’ brands, said it was already in talks with its creditors over its proposal debt restructuring and that he had identified assets to sell to raise funds.

Future Group’s flagship retail unit, Future Retail (FRTL.NS) – once the country’s second-largest retailer, is already in bankruptcy proceedings after it defaulted on its loans and its lenders rejected a sale of $3.4 billion of its assets to market leader Reliance Industries (RELI .NS). Read more

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Reporting by Aditi Shah Editing by Tomasz Janowski

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