August 10, 2022 13:15 (IST)
Follow us:
facebook-white sharing button
twitter-white sharing button
instagram-white sharing button
youtube-white sharing button
West Bengal: 9 dead in govt bus-autorickshaw collision in Birbhum | BJP only knows to divide people: Tejashwi Yadav with Nitish Kumar as they stake claim to form Bihar govt | Nitish Kumar to take oath as CM of Grand Alliance tomorrow, Tejashwi Yadav as deputy | Split between Nitish Kumar's JD(U) and BJP on cards? Decision tomorrow | India's badmin icon PV Sindhu clinches maiden CWG women singles gold
Lenders vote against Future Group's proposed deal with Reliance Future Retail Asset Sale

Lenders vote against Future Group's proposed deal with Reliance

India Blooms News Service | @indiablooms | 23 Apr 2022, 10:51 am

Future Group's plan to sell its retail and wholesale assets to Reliance Retail failed after the majority of the lenders of the flagship Future Retail Ltd (FRL) voted against such a takeover by Reliance, media reports said.

In a regulatory filing on Friday, FRL informed that 69 percent of the lenders have voted against while 30 percent have voted in favour of the proposed sale of the company’s assets to Reliance, ET reported.

The voting for creditors took place in a National Company Law Tribunal (NCLT) mandated process to get creditors' and shareholders' approval in connection with the scheme.

The deal had failed to come through due to US e-commerce giant Amazon's opposition which had earlier acquired a stake in Future Coupons.

In August 2019, Amazon had bought a 49 percent stake in Future Coupons for Rs 1,500 crore.

On August 29, 2020, Future Group announced the sale of its retail and wholesale assets to Reliance Retail Ltd for Rs 24,713-crore.

Amazon said its 2019 deal with Future Group prevents it from selling the shares of Future Retail to RIL, its biggest rival in India, as the world's biggest e-commerce platform indirectly owns about a 3.5 percent stake in Future Retail. Future denies the allegations.

The creditors voted on Thursday in a National Company Law Tribunal (NCLT) mandated process to seek shareholders’ and creditors’ approval for a deal that has been lingering for 20-months amid opposition from Amazon.

With the creditors voting against a takeover of Future Retail by Reliance, it is imminent for Future Group to go into bankruptcy, experts said.

The online-conducted shareholders' meetings of six Future Group’s listed entities including Future Retail, Future Lifestyle Fashion (FLF), Future Enterprises, Future Consumer, Future Market Networks and Future Supply Chain Solutions and their voting took place on Wednesday.

State Bank of India, Bank of India, Bank of Baroda, HDFC Bank among two-dozen lenders have already classified FRL’s outstanding debt as non-performing assets (NPA).

Related Images
FOHMA addresses press conference 01 Jan 1970, 05:30 am
Related Videos
PM Modi on Union Budget 2022-2023 01 Feb 2022, 06:28 pm
IBNS Live Business Chat 30 Dec 2021, 05:53 pm