The secured creditors of Future Retail Ltd have voted against the scheme of arrangement proposed by Reliance Industries Limited (RIL).
Following resistance from Future Retail Ltd (FRLsecured )’s creditors, Reliance Industries Ltd (RIL) has called off a proposed transaction with the company.
RIL stated in a filing with the stock exchanges that “the Future Group companies, which include Future Retail Ltd (FRL) and other listed companies involved in the scheme, have informed their shareholders and creditors of the results of the voting on the scheme of arrangement at their respective meetings.”
“According to the results of the voting, the shareholders and unsecured creditors of FRL have voted in favor of the scheme.” The secured creditors of FRL, on the other hand, voted against the proposal,” according to the statement.
“As a result, the subject scheme of arrangement will be unable to be implemented,” the document continued.
The stock exchanges were notified on August 29, 2020, that Reliance had filed a scheme of arrangement for the transfer of the retail and wholesale businesses, as well as the logistics and warehousing businesses, of Future Group to Reliance Retail Ventures Ltd (RRVL), a subsidiary of RRVL, and Reliance Retail and Fashion Lifestyle Ltd (RRFLL), a wholly-owned subsidiary of RRVL, for a total consideration of Rs 24,731 crore.
Amazon Inc., which had previously invested in Future Coupons, vigorously opposed this transaction and filed a lawsuit against it in the Supreme Court of India. It had also been successful in obtaining an injunction from the Singapore Arbitration Tribunal.
Source: The Hindu
