The Supreme Court ruling on Friday in favor of US e-commerce giant Amazon in the Reliance Retail-Future Retail merger case raised concerns among lenders at the Kishore Biyani-owned company of a deeper discount on the restructured loans.
Upholding Singapore Emergency Arbitrator’s order barring Future Group from going ahead with its rupee 24,713 crore deal with Reliance Retail, the Supreme Court said the order was enforceable in India and that Indian arbitration laws allowed it as well.
According to a report through Commercial standard, Should the merger deal fail, the operation of the loan restructuring would be strained, forcing banks to accept larger haircuts than previously considered.
Read also | Future case of the Group-Reliance affair: Big victory for Amazon as the Supreme Court rules in its favor
There are concerns about a deeper discount on restructured loans, bankers told the publication.
Future Retail Ltd said on Friday that it intends to pursue “all avenues available” to secure its 24,731 crore deal with Reliance Industries and that banks will monitor the actions taken by the company’s promoters and assess the implications. for the financial profile.
Future Retail has completed the ad hoc restructuring of its onshore debt of approximately Rs 10,200 crore which includes the extension of the maturity of its term loans and other borrowings. The restructuring was approved as part of the resolution. The group’s exposure to debt is over Rs 20,000 crore, a senior public sector bank official told the publication.
According to the report, lenders are also considering whether to take the Future Group to bankruptcy court.
(With PTI inputs)