India's Reliance Industries Limited last week called off its ₹24,713-crore deal with the Future Group. Reliance said the deal, at the centre of a series of legal battles since 2020, ‘cannot be implemented’ after Future's secured creditors rejected it. The announcement may push one of India's biggest retailers now to opt for filing a bankruptcy petition.

“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,” Reliance said in a regulatory filing.

Shares of Future Supply Chain Solutions, Future Retail, Future Lifestyle Fashions, Future Consumer and Future Enterprises reportedly fell between 5 per cent and 20 per cent following the announcement.

Future has been in a long-drawn legal battle with Amazon over the $3.4-billion sale of its retail assets to rival Reliance Industries.

Amazon had obtained legal injunctions that stalled Future's deal with Reliance, sparking a series of legal battles in various forums, including an arbitration panel in Singapore.

Reliance had suddenly taken control of hundreds of Future stores in February, citing non-payment of rent, after assuming many of the leases held by cash-strapped Future.

Fibre2Fashion News Desk (DS)

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