“The shareholders and unsecured creditors of FRL (Future Retail) have voted in favour of the scheme. But the secured creditors of FRL have voted against the scheme. In view thereof, the subject scheme of arrangement cannot be implemented,” Reliance said.
The rejection by the lenders comes amid a legal challenge by U.S. e-commerce giant Amazon.com Inc which has accused Future of violating certain contracts by dealing with Reliance, run by India’s richest man, Mukesh Ambani.
Reliance in 2020 sought to purchase Future’s retail, wholesale and other assets in a $3.4 billion deal after Future was hit hard by the pandemic.
Secured lenders of India’s Future Retail on Friday rejected the deal, and Future now faces the prospect of a bankruptcy process.