Reliance calls off $3.4 bln retail deal with India's Future Group (updated)

Future Enterprises

23/04/2022 12:08

(Adds detail, context)
    By Aditya Kalra and Swati Bhat
    MUMBAI, April 23 (Reuters) - India's top retailer Reliance
 RELI.NS  on Saturday called off its $3.4 billion deal with
Future Group, saying it "cannot be implemented" after Future's
secured creditors rejected it.
    The deal was at the centre of legal battles since 2020 after
Future's partner Amazon.com Inc  AMZN.O  legally blocked it,
citing violation of certain contracts. Future denied any
wrongdoing.
    In a stock exchange filing on Saturday, Reliance said the
deal now cannot go through as "the secured creditors of FRL
(Future Retail) have voted against" it.
    Future Retail  FRTL.NS  and Amazon did not immediately
respond to a request for comment.
    Future's secured lenders on Friday rejected the deal, and
the company, once India's second-largest retailer with more than
1,500 outlets, now faces the prospect of a bankruptcy process.
 urn:newsml:reuters.com:*:nL2N2WK0N9
    Future's fall is "an unfortunate event", one of the sources
with direct knowledge of the dispute said on Saturday.
    Amazon had obtained legal injunctions that stalled Future's
deal with Reliance, sparking a series of legal battles in
various forums, including an arbitration panel in Singapore.
    In February, Reliance stunned the retail industry by
suddenly seizing control of hundreds of Future stores, citing
non-payment of rent, after assuming many of the leases held by
cash-strapped Future.  urn:newsml:reuters.com:*:nL2N2V904L
    That spooked bankers, some of whom have already initiated
debt recovery proceedings against Future.

 (Reporting by Swati Bhat and Aditya Kalra; editing by Jason
Neely)
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