Future Retail Ltd’s secured creditors have voted against Reliance’s proposed arrangement
Future Retail Ltd’s secured creditors have voted against Reliance’s proposed arrangement
Reliance Industries Ltd (RIL) has called off a proposed transaction with Future Retail Ltd (FRL) following opposition from FRL’s secured creditors.
In a filing with the exchanges, RIL said: “The Future Group companies, including Future Retail Ltd (FRL) and other listed companies involved in the Scheme, have indicated the results of voting on the Settlement Scheme by their shareholders and creditors at their respective meetings.”
“Following these results, FRL shareholders and unsecured creditors voted in favor of the program. But FRL’s secured creditors voted against the scheme,” the statement said.
“In view of this, the relevant Scheme of Arrangement cannot be implemented,” it added.
On August 29, 2020, Reliance had indicated in the stock exchanges a Scheme of Arrangement for the transfer of Future Group’s retail, wholesale, logistics and warehousing businesses to Reliance Retail Ventures Ltd (RRVL), its subsidiary, and Reliance Retail and Fashion Lifestyle Ltd (RRFLL), a wholly owned subsidiary of RRVL, for ₹24,731 crore.
Amazon Inc., which had previously invested in Future Coupons, had fiercely contested this deal and challenged it in the Supreme Court of India. It had also obtained an injunction from the Singapore Arbitration Tribunal.
