Reliance-Future Deal Ends, Secured Creditors Rejected The Deal

Reliance-Future deal ends, secured creditors of Future Retail reject the deal. Future Group has suffered a major setback due to the Rs 24,713 crore deal with Reliance.

The secured creditors of Kishore Biyani’s Future Retail Limited (FRL) have rejected the deal with a majority.

Following this, Reliance Industries on Saturday told the BSE that its agreement to buy Future Retail could not be implemented as the retail company’s lenders rejected the deal.

Reliance said that Future Group companies, including Future Retail Limited (FRL) and other listed companies included in the scheme, have reported the results of voting by their shareholders and creditors at their respective meetings.

According to this, 69.29 percent of the secured creditors have disagreed with the agreement signed with Reliance Retail. Only 30.71 percent of the secured creditors were in favor of it.

Secured creditors did not give full support to take the deal forward.

The deal between FRL and Reliance Retail has got the support of over 75 percent shareholders and unsecured creditors.

85.94 percent of shareholders of the company, 78.22 percent of unsecured creditors have voted in its favor.

But to go ahead with the deal, at least 75 percent support of secured creditors had to be secured, which has not been achieved.

82.75 percent of secured creditors voted against the deal.

Future Lifestyle Fashion Ltd also reported that 82.75 percent of its secured creditors have voted against the deal.

The company has also received majority support for the deal from shareholders and unsecured creditors.

It is noteworthy that several companies of Future Group had called a meeting of their shareholders, secured and unsecured creditors this week.

Reliance-Future deal ends: 19 companies to be sold to Reliance Retail Ventures Ltd.

In this meeting, it was proposed to seal the merger deal with Reliance Retail.

Announcing the deal in August 2020, Future Group had said that 19 of its companies operating in the retail, wholesale, logistics, and warehousing sectors would be sold to Reliance Retail Ventures Ltd.

American e-commerce company Amazon has been continuously opposing this deal. It says the deal is in violation of Future’s Rs 1,500 crore investment agreement with it in the year 2019.