NEW DELHI: Future Group on Tuesday filed a petition in the Supreme Court against its lenders, asking not to be declared defaulters and seeking an extension to execute Rs 3,500 crore payments to its lenders.
In its filing, reviewed by TNIE, Future Retail said it was unable to service the debt due to legal challenges from Amazon.
Future this month had told Indian exchanges it was unable to pay Rs 3,500 crore to its lenders on Dec 31 as it could not sell small stores. Future has failed to close its $3.4 bn deal to sell its retail assets to Reliance Industries due to the tussle with US e-commerce major, which says Future violated some pre-existing contracts between the two sides by deciding to sell its retail assets to Reliance.
In its plea, FRL urged the Supreme Court to ask lenders and RBI to grant more time to execute the sale.
Rejects Amazon’s offer
Independent directors of Future Retail Ltd, in a letter on Tuesday, turned down Amazon’s offer of financial help to the company through a deal with equity firm Samara Capital. Saying that Amazon has chosen to ignore FRL’s requirement of funds.
The letter, seen by TNIE, read, “you neither were nor are serious about funding FRL within the required timelines but merely want to block the sale of small-store formats assets.”