Mumbai: Rs. 24,713 crore deal has been opposed by the secured creditors of Future Group. The secured creditors are against the scheme. After learning about this, Reliance group has cancelled the deal with Future Group.
In August 2020, Rs 24,713-crore deal was announced by Future Group. The deal was announced to sell 19 companies operating in retail, wholesale, logistics and warehousing segments to Reliance Retail Ventures Ltd (RRVL).
In a filing with stock exchanges, RIL said, “The scheme of arrangement for the transfer of retail & wholesale business and the logistics and warehousing business of Future Group to Reliance Retail Ventures Limited (RRVL), a subsidiary of the Company and Reliance Retail and Fashion Lifestyle Limited (RRFLL), a wholly-owned subsidiary of RRVL, cannot be implemented.”
Reliance said, “Further to our intimation to Stock Exchanges dated August 29, 2020 on the subject, we wish to inform you that the Future Group companies comprising Future Retail Limited (FRL) and other listed companies involved in the scheme have intimated the results of the voting on the scheme of arrangement by their shareholders and creditors at their respective meetings.”
As per these results, the shareholders and unsecured creditors of FRL voted in scheme favor. But an opposite reaction has came from the secured creditors of FRL. The secured creditors of FRL have voted against the scheme. In view thereof, the subject scheme of arrangement cannot be implemented, added RIL.
As an independent media platform, we do not take advertisements from governments and corporate houses. It is you, our readers, who have supported us on our journey to do honest and unbiased journalism. Please contribute, so that we can continue to do the same in future.
