After Future Group’s secured creditors rejected the $3.4 billion deal, India’s leading retailer Reliance (RELI.NS) called it off on Saturday, saying it “cannot be implemented.”
Since 2020, the acquisition has been the subject of court fights after Future’s partner Amazon.com Inc (AMZN.O) legally stopped it, citing contract violations. Future vehemently denied any misconduct on his part.
The purchase can no longer go through, Reliance stated in a stock exchange filing on Saturday, since “the secured creditors of FRL (Future Retail) have voted against it.”
A request for comment from Future Retail (FRTL.NS) and Amazon was not immediately returned.
Future’s secured lenders rejected the transaction on Friday, and the company, which was formerly India’s second-largest retailer with over 1,500 locations, now risks bankruptcy. find out more
On Saturday, one of the insiders with intimate knowledge of the issue described Future’s decline as “an awful incident.”
Future’s transaction with Reliance had been halted due to legal injunctions secured by Amazon, which sparked a series of legal disputes in various forums, including a Singapore arbitration panel.
After acquiring many of the leases held by cash-strapped Future, Reliance surprised the retail industry by seizing control of hundreds of Future stores in February, alleging non-payment of rent as the reason.
This alarmed bankers, who have already begun debt collection proceedings against Future.