Future Group companies will convene meetings of their respective shareholders and creditors between April 20 and April 23, 2022 for the proposed Rs 24,713 crore deal with Reliance Retail. Listed Future Group entities such as Future Consumer Limited updated the exchanges about the dates of the meetings.
The deal will go ahead after Reliance Retail operates at least 300 stores of Future Retail and the Kishor Biyani-led conglomerate fails to make lease payments to landlords.
The Mumbai Bench of the National Company Law Tribunal (NCLT) had given its approval for convening a meeting of shareholders and creditors of the respective Future Group companies on February 28.
The tribunal had also dismissed a plea by e-commerce major Amazon challenging Future Group’s deal with Reliance Retail, part of oil-to-telecom conglomerate Reliance Industries.
The NCLT, in its 16-page order, has directed the meeting of shareholders of six companies to be held on April 20, 2022.
The companies are – Future Consumer, Future Lifestyle Fashion, Future Market Network, Future Retail, Future Supply Chain Solutions and Future Enterprise Ltd.
The meeting of the secured and unsecured creditors of these companies will be held the next day (April 21).
The meeting of secured creditors of Future Group holding companies including Acute Retail Infra, Basuti Sales & Trading, Brattle Foods, Chirag Operating Lease Company, Hare Krishna Operating Lease, Nice Texkot Trading & Agency and Nishtha Mall Management will be held on April 22. ,
The meeting of the unsecured creditors of the holding companies will be held on April 23.
“The applicant companies concerned shall send to their respective shareholders, secured creditors and unsecured creditors an addendum to the original notice by March 20, 2022,” the NCLT order said.
Future Retail and other Future Group firms had filed an application on November 8, 2021, seeking further directions for the revised dates of the meetings.
As part of the deal, Future Enterprises Limited (FEL) is the transferee company of Reliance Retail.
Future Group’s 19 companies operating in retail, wholesale, logistics and warehousing segments will be consolidated into a single entity – FEL – and then transferred to Reliance.
In August 2020, the loss-making retail giant proposed to sell its retail, wholesale and logistics arms for Rs 24,713 crore, comprising businesses including fashion at Big Bazaar, Koryo, Foodhall and EasyDay.
However, the deal could not be closed as Future’s warring partner Amazon went to courts, citing breaches of certain contracts. Future denies any wrongdoing.
After the deal was mired in a series of litigation and arbitrations, the long-stop date for the plan by Reliance was extended by six months to September 30, 2022, FRL had informed last week.
This is the third extension of time by Reliance Retail Ventures Ltd (RRVL), the retail arm of Reliance Industries, to complete a deal worth Rs 24,713 crore with Future Group.
Earlier, RRVL had extended the deadline from September 30, 2021 to March 31, 2022. The earlier long stop date was March 31, 2021, which was extended to September 30, 2021.
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