Reliance cancels deal with Future after secured creditors reject it
Reliance Industries told BSE on Saturday that its deal to buy Future Retail for nearly Rs 25,000 crore could not be implemented after the retail company’s lenders rejected the deal.
Reliance said in a regulatory filing that Future Group companies including Future Retail Limited (FRL) and other listed companies involved in the scheme hinted at the results of the vote on the plan of arrangement by their shareholders and creditors during their respective meetings.
Majority shareholders and unsecured creditors of Future Retail, Future Lifestyle Fashions and other group companies have voted in favor of the merger plan with Reliance Retail, the company announced on Friday.
However, a majority of secured creditors of four of the five Future companies (for which the voting results are announced) voted against the resolution required to pass Future Group’s Rs 25,000 crore program to sell most of its technology business. retail and logistics to Reliance Group. .
In Future Lifestyle Fashions, 81.91% of shareholders voted in favor of the proposed merger, as did 93.93% of unsecured creditors.
Shareholders of Future Group’s six listed companies voted on Wednesday. Bankers said all major lenders rejected the proposal.
Lenders have rejected the half-mast sale of Kishore Biyani’s Future Group to Reliance Retail, multiple sources have said Trade standard Friday, after Thursday’s electronic vote, citing “uncertainty over the entire proposal” for rejecting the proposal.
After rejection by lenders, the only option for resolution of Kishore Biyani’s retail chain is bankruptcy court.
“…the FRL’s secured creditors voted against the scheme. In view of this, the arrangement scheme in question cannot be implemented,” Reliance said in the exchange filing.