A day after
Future Group’s proposed deal to sell its assets to
Reliance Retail was rejected by a majority of lenders to flagship Future Retail Ltd (FRL), Reliance Industries in a stock exchange intimation on Saturday has said that as such, the subject scheme of arrangement cannot be implemented.
Future Group’s proposed deal to sell its assets to
Reliance Retail was rejected by a majority of lenders to flagship Future Retail Ltd (FRL), Reliance Industries in a stock exchange intimation on Saturday has said that as such, the subject scheme of arrangement cannot be implemented.
“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,” the release said.
“As per these results, the shareholders and unsecured creditors of FRL 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.”
In a regulatory filing to the stock exchanges on Friday, FRL said 69% of lenders voted against the plan while 30% supported it. As much as 83% of the secured creditors of Future Lifestyle Fashion, the group’s second largest listed entity, also rejected the proposed sell-off to Reliance.
While the scheme received more that required 75% of votes from its shareholders and unsecured creditors, it did not receive requisite 75% favourable voting from its secured creditors.
As per NCLT rules, a scheme must secure at least 75% votes in favour from each of the three groups of shareholders, secured creditors, and unsecured creditors to move forward.
Lenders to Future Group include State Bank of India, Bank of India, Bank of Baroda and HDFC Bank. Some of them turned down the sale plan due to the lack of commitment from Reliance Industries Ltd (RIL) on the deal, said people with knowledge of the matter.
In August 2020, Future Group announced the Rs 24,713-crore deal to sell 19 companies operating in retail, wholesale, logistics and warehousing segments to Reliance Retail Ventures Ltd (RRVL).
RRVL is the holding company of all the retail companies under the RIL Group.
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