In order to complete the proposed deal, 75% of the secured lenders of Future’s flagship company Future Retail (FRL) were required to vote for the plan. But about 69 per cent voted against it. FRL said in a regulatory filing on Friday.
bank of india, state Bank of IndiaBank of Baroda and Axis Bank are among the top lenders to Mumbai-based FRL, which could stare at bankruptcy proceedings following Friday’s developments.
A senior banker said he had no option but to reject the offer Reliance The group had made no commitment and Biyani, once known as the king of retail, found no support for the plan he had put in place.
A majority of debt-ridden FRL shareholders (86%) and unsecured creditors (78%), however, voted in favor of the plan, FRL’s filings showed, prompting sources to say it may not be the end of the road. Reliance, which may explore legal options to complete the outright acquisition of Future’s assets.
While an FRL spokesperson did not comment on this story, a questionnaire emailed to Reliance Retail did not elicit a response at the time of printing of this article.
While FRL and US e-tailers heroineEntangled in a lengthy litigation process, which is trying to stop the pre-sale of assets to Reliance, Reliance moved in the last week of February to take control of around 800-900 stores of FRL over non-payment of rent. kept.
The telecom-to-petroleum conglomerate had earlier sublet these premises to a cash-strapped FRL, which was deeply hit during the pandemic and defaulted on its loan payments several times. FRL and Future Enterprises (FEL) failed to pay Rs 8,158 crore in loan repayments, which was due on March 31, 2022, leading Bank of India to initiate bankruptcy proceedings against FRL.