Reliance Industries on Saturday, April 23, said that its Rs 24,713-crore deal with the Future Group cannot go ahead as secured creditors of the latter have voted against it. In a regulatory filing, Reliance said Future Group companies comprising Future Retail Limited (FRL) and other listed companies involved in the scheme have intimated the results of the voting on the scheme of arrangement by their shareholders and creditors at their respective meetings.
"... The secured creditors of FRL have voted against the scheme. In view thereof, the subject scheme of arrangement cannot be implemented," said RIL, while updating on the scheme of arrangement for the transfer of retail and wholesale business and the logistics and warehousing business of Future Group to its subsidiary Reliance Retail Ventures Ltd (RRVL) and Reliance Retail and Fashion Lifestyle Ltd (RRFLL).
In August 2020, Future Group announced the Rs 24,713-crore deal to sell 19 companies operating in retail, wholesale, logistics and warehousing segments to Reliance Retail Ventures Ltd (RRVL). RRVL is the holding company of all the retail companies under the RIL Group.
The Future group, in August 2020, announced a Rs 24,713-crore deal with Reliance Retail Ventures Ltd, a subsidiary of Reliance Industries Ltd. In 2020, Amazon invoked arbitration after Future Retail announced its asset sale deal with Reliance Industries Ltd's wholly-owned subsidiary, Reliance Retail.
In December last year, the Competition Commission of India had imposed a penalty of Rs 202 crore on Amazon and suspended its approval for the e-tailer's deal with Future Coupons, a promoter firm of the group's public listed company Future Retail Ltd, seeking more information.
In January this year, FRL moved the Supreme Court seeking direction to restrain its lenders from declaring the company as a non-performing asset (NPA), in connection with a default of nearly Rs 3,500 crore. It had cited its ongoing legal battle with Amazon as a hurdle in its monetisation plans.
(With IANS and PTI inputs)