Reliance says cannot implement $3.4 bln deal with India's Future Group

Future Enterprises

23/04/2022 10:55

MUMBAI, April 23 (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  AMZN.O  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.  urn:newsml:reuters.com:*:nL2N2WK0N9

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