Future Retail moves Supreme Court seeking relief from being declared defaulter

Future Group has once again knocked on the Supreme Court’s door, this time to seek relief from its accounts being declared as non-performing assets (NPAs) by its lenders owing to the freeze on the sale of its small-format stores given its ongoing dispute with Amazon.

On the verge of being declared a defaulter for missing payments to the banks, Future Retail claims that it is likely to face legal action from its lenders in light of circumstances that are beyond its control. These actions could include the initiation of insolvency proceedings against the entity.

Future Retail’s inability to pay off its debts to the bank is on account of the company’s inability to complete its small-format stores' asset monetisation due to injunctions orders passed by the arbitration tribunal in its dispute with Amazon.

Despite being aware of this development where Future group’s hands remain tied while the challenge to the injunction orders remains pending, the company’s lenders have issued ‘event of default’ notices to the company, it tells the top court in its plea.