Reliance has called off its $3.4 billion deal with Future Group, saying it cannot be implemented after Future’s secured creditors rejected it.
The deal was at the centre of legal battles since 2020 after Future’s investment partner Amazon.com legally blocked it, citing violation of certain contracts. Future denied any wrongdoing.
Reliance said the deal now cannot go through as the secured creditors of FRL (Future Retail) have voted against it.
Future’s secured lenders rejected the deal. Future, once India’s second-largest retailer with more than 1,500 outlets, faces the prospect of a bankruptcy process.
Amazon 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.
In February, Reliance stunned the retail industry by seizing control of hundreds of Future stores, citing non-payment of rent, after assuming many of the leases held by cash-strapped Future. That spooked bankers, some of whom have already initiated debt recovery proceedings against Future.