homebusiness Newscompanies NewsRIL says Future deal can't be implemented after secured creditors voted against it
RIL says Future deal can't be implemented after secured creditors voted against it
Unsecured creditors and shareholders voted in favour of the deal, but as bondholders voted against it, RIL said the scheme of arrangement cannot be implemented.
Reliance Industries Limited (RIL) on Saturday announced that its arrangement with Future Group for the latter's transfer of its retail, wholesale, logistics and warehouse assets for a consideration of Rs 24,713 crore to Reliance Retail Ventures Limited (RRVL) cannot be implemented, after the secured creditors of the entities that comprise the Kishore Biyani-led group voted against the deal.
Unsecured creditors and shareholders voted in favour of the deal, but as bondholders voted against it, RIL said the 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. 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," RIL said in the statement.
On Friday, CNBC-TV18 had reported that 69.29 percent of FRL's secured lenders, 82.75 percent of secured lenders of Future Lifestyle Fashion and 100 percent of Future Consumer's secured creditors voted against the deal. It is understood that the voting pattern was largely along these lines in the other 17 entities that comprise Future Group, with possibly the exception of Future Supply Chain, 81.63 percent of whose secured creditors voted in favour of the deal.
Sources had told CNBC-TV18 that secured lenders including public sector banks (PSBs) were against the deal due to a lack of assurance from RRVL on debt repayment and deal valuation after renegotiation.
Disclaimer: Network18, the parent company of CNBCTV18.com, is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.
First Published: Apr 23, 2022 3:54 PM IST
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