New Delhi: Reliance Industries (RIL) said on Saturday that it has canceled the proposed deal to acquire Future Retail (FRL) assets worth Rs 24,700 crore.
at shareholders’ and creditors’ meetings Future Group The companies of FRL and other listed entities involved in the scheme, held on April 20 and 21, reported the results of the voting.
“As per these results, the shareholders and unsecured creditors of FRL have voted in favor of the scheme, but secured creditors of FRL have voted against the scheme. In view of this, the subject plan of the arrangement cannot be implemented,” RIL said in a regulatory filing.
However, a senior banker said that the lenders were forced to vote against the proposal as RIL had not made any commitment and was the promoter of Future Group. Kishore Biyani There appears to be a lack of support for the plan put out by the retailer.
While this development may result in cash crunch for FRL facing bankruptcy proceedings, most of its stores and employees are currently with RIL. At the end of February, RIL took over about 900 stores of FRL as the latter failed to pay rent.
The group had earlier subletted these premises to FRL, which was deeply affected by the lockdown brought on by the pandemic and defaulted on its loan repayments. TOI had first reported about the store acquisition in its February 26 edition.
Future Enterprises (FEL) and FRL, which are embroiled in a bitter legal battle with the US e-tailer heroine It failed to pay Rs 8,158 crore in loan repayment, which was due on March 31, on the sale of its proposed assets to RIL, one of its largest lenders. bank of india ,boi) to initiate bankruptcy proceedings against it.
FRL had cited its lawsuit with Amazon as one of the major reasons for its failure to pay its dues. After announcing the proposed Futures-Reliance deal nearly two years ago, Amazon pulled FRL to a Singapore-based emergency arbitrator over alleged breach of contract.
at shareholders’ and creditors’ meetings Future Group The companies of FRL and other listed entities involved in the scheme, held on April 20 and 21, reported the results of the voting.
“As per these results, the shareholders and unsecured creditors of FRL have voted in favor of the scheme, but secured creditors of FRL have voted against the scheme. In view of this, the subject plan of the arrangement cannot be implemented,” RIL said in a regulatory filing.
However, a senior banker said that the lenders were forced to vote against the proposal as RIL had not made any commitment and was the promoter of Future Group. Kishore Biyani There appears to be a lack of support for the plan put out by the retailer.
While this development may result in cash crunch for FRL facing bankruptcy proceedings, most of its stores and employees are currently with RIL. At the end of February, RIL took over about 900 stores of FRL as the latter failed to pay rent.
The group had earlier subletted these premises to FRL, which was deeply affected by the lockdown brought on by the pandemic and defaulted on its loan repayments. TOI had first reported about the store acquisition in its February 26 edition.
Future Enterprises (FEL) and FRL, which are embroiled in a bitter legal battle with the US e-tailer heroine It failed to pay Rs 8,158 crore in loan repayment, which was due on March 31, on the sale of its proposed assets to RIL, one of its largest lenders. bank of india ,boi) to initiate bankruptcy proceedings against it.
FRL had cited its lawsuit with Amazon as one of the major reasons for its failure to pay its dues. After announcing the proposed Futures-Reliance deal nearly two years ago, Amazon pulled FRL to a Singapore-based emergency arbitrator over alleged breach of contract.