Reliance Cancels Rs 24,713 crore Deal After Future Group’s Secured Creditors Voted Against It

Future group’s creditors rejected deal, so it cannot be implemented: Reliance

Following secured creditors – primarily banks and financial institutions – of several listed entities of Future Group rejection of the sale worth Rs 24,713 crore, the deal cannot be implemented, said Reliance Industries Ltd (RIL) in a regulatory filing on Saturday.

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).

On Saturday, 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.

Indeed, 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 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, added RIL.