Reliance says cannot implement $3.4 billion deal with India’s Future Group
2022.04.23 13:41
FILE PHOTO: People use an escalator as they exit a Future Group Big Bazaar retail store in Mumbai, India, November 25, 2020. REUTERS/Niharika Kulkarni/File Photo
MUMBAI (Reuters) – Reliance Industries said on Saturday its deal with Future Group “cannot be implemented” after secured creditors in the latter rejected it, the company said in an exchange filing.
“The shareholders and unsecured creditors of FRL (Future Retail) have voted in favour of the scheme. But the secured creditors of FRL have voted against the scheme. In view thereof, the subject scheme of arrangement cannot be implemented,” Reliance said.
The rejection by the lenders comes amid a legal challenge by U.S. e-commerce giant Amazon.com Inc (NASDAQ:AMZN) which has accused Future of violating certain contracts by dealing with Reliance, run by India’s richest man, Mukesh Ambani.
Reliance in 2020 sought to purchase Future’s retail, wholesale and other assets in a $3.4 billion deal after Future was hit hard by the pandemic.
Secured lenders of India’s Future Retail on Friday rejected the deal, and Future now faces the prospect of a bankruptcy process.
