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