The government-owned National Asset Reconstruction Company Limited (NARCL) has offered to acquire the distressed loan accounts of five companies. However, the binding offer would only be made after NARCL receives written consent from lenders. As per media reports, NARCL has stated that it will only make a binding offer if 75% of the lenders agree. Also, the out-of-court settlement will occur if 75% of the lenders agree.

Future Retail, GTL Ltd, Consolidated Construction, McNally Bharat Engineering, and Rainbow Papers have been offered to transfer the distressed loan accounts. Future Retail, CCCL and McNally Bharat Engineering are already undergoing insolvency proceedings for these five firms. Future Group, McNally Bharat, CCCL and GTL owes Rs 17,511 crore, Rs 4,840 crore, Rs 2,693 crore, and Rs 4,866 crore to the lenders, respectively.

Earlier in July, NARCL had proposed to take distressed assets of 17 companies worth Rs 93,249 crore. The list included five Future Group companies: Future Retail, Future Lifestyle Fashions Ltd, Future Enterprises, Future Supply Chain Solutions and Future Consumers.

Incorporated under the Companies Act, NARCL has been set up by banks to aggregate and consolidate stressed assets for their subsequent resolution. PSBs maintain 51% ownership in NARCL. Selling loans to NARCL assures that the Asset Restructuring Company will pay the loans if the company fails to pay the dues at the end of 5 years.