Future Group Lenders Reject Reliance's Retail Assets Deal: Report
NDTV
Lenders to Future Group rejected a $3.4 billion deal for its retail assets from Reliance Industries Limited
Lenders to Future Group rejected a $3.4 billion deal for its retail assets from Reliance Industries Limited (RIL), banking sources said, adding to troubles at the firm which has been struggling to pay off debt since its business was hit hard by the COVID-19 pandemic.
"All secured lenders have voted against the scheme of arrangement put forward by Reliance," said a senior executive at a state-owned lender.
"Initially we thought that any other alternative methods will result in lower recoveries but since then it has been entangled in legal issues and now we are unsure of the value left in it," the source said.
The rejection by lenders come amid a long-drawn legal challenge by U.S. e-commerce giant Amazon.com Inc that has accused Future of violating certain contracts by dealing with Reliance, run by Mukesh Ambani.
