Canara Bank-led lenders have given their approval to the one-time settlement offer proposed by Kishore Biyani for the debt owed by the holding company of SOBO Central Mall (formerly known as Crossroads) at Haji Ali in south Mumbai. Bansi Mall Management Company (BMMCL), which is promoted by Biyani, had a debt of Rs 7.37 billion with lenders. The promoters offered Rs 4.40 billion to settle the debt. The settlement represents a 40% reduction for the lenders. The offer was approved at a joint lender meeting last month, as there were no bids for the mall during an auction in January 2024, where the reserve price was set at Rs 4.75 billion. Initially, lenders valued the mall at Rs 6 billion when sanctioning the loans. However, due to the property's disuse, the internal valuation was marked down to Rs 4 billion. Although the company's contractual liability is Rs 7.37 billion, the book liability of the banks holding the first charge (Canara Bank and Punjab National Bank) is Rs 2.2 billion. The additional liability of Rs 5.75 billion arises from a second charge held by United Bank of India and PNB against which the property was offered as security. Canara Bank and Biyani did not respond to queries for comment. The proposal was tentatively accepted by the banks at the joint lenders' meeting. The completion of some formalities by the borrower, including paying 10% upfront and the remaining amount before the third week of March, is required for the deal to be finalised. BMMCL was incorporated in 2005 by the promoters of the Future group to develop and manage the mall. SOBO Central Mall, with a total leasable area of 148,198 sq ft, was rented out to Biyani's group companies, including Future Consumer Enterprises, Future Retail, and Future Lifestyle. Future Consumer Enterprises occupied only 1% of the leasable area. BMMCL defaulted on its obligations after the cessation of rental income during the Covid lockdown. Rent recoveries were weak due to the distressed state of Future companies renting the premises. The lack of cash flows severely impacted the company's financials, leading to continuous defaults. This situation prompted lenders to initiate proceedings under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act. Crossroads, the first mall in the country set up by the Ashok Piramal group, faced challenges in managing customer traffic when it was launched in 1999. In response, the management briefly restricted free entry to those with a credit card or a mobile phone ? both rare items in those days. Others without these items had to pay a Rs 60 entry fee. However, a downturn in retail resulted in the promoters exiting the mall management business.