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Reliance gets NCLT permission to seek creditors’ nod for proposed deal with Future Group

Granting Reliance Retail Ventures Limited (RRVL) the permission, the NCLT set aside objections raised by Amazon terming them as “premature”.

October 18, 2021 / 06:28 PM IST
Reliance retail (Image: Shutterstock)

Reliance retail (Image: Shutterstock)

The Mumbai Bench of the National Company Law Tribunal (NCLT) on October 18 allowed Reliance to go ahead with seeking creditors’ nod, CNBC-TV18 reported.

Granting Reliance Retail Ventures Limited (RRVL) the permission, the NCLT set aside objections raised by Amazon terming them as “premature”.

Reliance Retail, the retail arm of oil-to-telecom conglomerate Reliance Industries, had moved the NCLT and sought permission to proceed with seeking creditors’ nod for reorganising companies in lieu of the proposed Future-Retail Deal.

Last month, on September 28, NCLT Mumbai had passed an order, inter-alia, allowing the Future Group permission to meet with its shareholders and creditors for the purpose of seeking approval for the sale of its assets to Reliance Retail Ltd.

Also read: How the Amazon, Future Retail saga unfolded in multiple courts

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The NCLT rejected the intervention application filed by Amazon on the Reliance-Future deal and asked the Future Group to propose a suitable date to hold the extraordinary general meeting (EGM) of the shareholders and creditors.

Both the Future Group and Reliance had announced in August 2021 that Reliance Retail will acquire the wholesale, retail, logistics, and warehousing businesses from Kishore Biyani’s Future Group for Rs 24,713 crore.

Kishore Biyani moved to sell Future Group’s assets to RRVL after operations suffered under the national lockdown during the first wave of COVID-19 in the year 2020.

After RRVL announced the acquisition of Future Group’s retail and wholesale assets and the logistics and warehousing businesses by way of a slump sale, Amazon, which had acquired a 49 percent stake in Future Retail’s promoter entity Future Coupons in December 2019, said the deal went against its agreement with the Future Group.

(Disclaimer:  Moneycontrol is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.)
Moneycontrol News
first published: Oct 18, 2021 05:05 pm

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