FRL secured creditors reject Rs 24,713-cr deal with RIL

23 Apr 2022 , 05:22 PM

In a regulatory filing to the stock exchanges on Friday, FRL said 69.29% of secured creditors voted against the plan while 30.71% supported it.

Meanwhile, 78.22% unsecured creditors voted in favour while 21.78% against it.

Further, 85.94% FRL shareholders voted in favour of the deal while 14.06% voted against it.

RIL on Saturday said that the Future Group companies comprising 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, RIL said in a statement.

In view thereof, the subject scheme of arrangement cannot be implemented, it added.

On 29 August 2020, RILs subsidiary Reliance Retail Ventures (RRVL) announced acquisition of the retail & wholesale business and the logistics & warehousing business of the Future Group as going concerns on a slump sale basis for Rs 24,713 crore.

However, US retail giant Amazon opposed the FRLs deal with RRVL, citing its non-compete agreement with the Kishore Biyani-led chain. Amazon has about 5% stake in FRL after it bought 49% in Future Coupons for Rs 1,500 crore in August 2019.

Shares of FRL declined 3.94% to settle at Rs 29.25 on Friday.

FRL is leading retailer that operates multiple retail formats in both value and lifestyle segment of Indian consumer market. On a consolidated basis, FRL reported net loss of Rs 1063.36 crore in Q3 December 2021 as against net loss of Rs 846.92 crore in Q3 December 2020. Net sales surged 86.86% to Rs 2815.68 crore in Q3 December 2021 over Q3 December 2020.

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