New Delhi: Future Group Three sources told Reuters on Thursday it plans to challenge its own lenders in the Supreme Court to avoid being named a defaulter for missing payments.
Future, the country’s second-largest retailer, has failed to complete the sale of its $3.4 billion retail assets to rival since 2020 due to successful legal challenges by Amazon, which the Indian conglomerate argues has made with some non-profits. breached the competing contractual terms that both parties had entered into. Future denies any wrongdoing.
Future told exchanges this month that it was unable to pay its lenders Rs 3,500 crore ($470 million) on December 31 because it could not sell certain smaller stores because of a dispute with Amazon. It had hoped to use the 30-day grace period to resolve the situation.
In addition, banks are bound by law to classify futures accounts as a “non-performing asset” or NPA, and declare it as a defaulter, further complicating the debt-ridden company’s financial position. It becomes
Sources said that Future was preparing a vision in the Supreme Court within a few days to urge judges to restrain its lenders from taking any coercive steps and extend the timelines for selling their small stores and clearing their dues. .
Future’s 1,700 outlets include around 900 small-sized stores, with the rest being large-format hypermarkets and fashion outlets.
Besides, Future may also ask judges to direct the country’s central bank to extend the regulatory grace period by 30 days and ask lenders not to declare it as NPA, a source said.
The sources declined to be identified because the plans are not public. Major bankers Future, State Bank of India, Bank of Baroda and Bank of India and the RBI did not immediately respond to requests for comment.
Even the future did not respond.
Future’s plans signal a growing crisis at the retail conglomerate, which has said it fears liquidation and the loss of more than 27,000 jobs at its main retail arm, Future Retail, if its asset sale plans to rival. Reliance Industries fails.
A banker with exposure to futures said that if futures do not make payments by the end of January, lenders will be forced to make financial provisions in line with the regulations in their books, unless “there is a legal angle and the court takes it up”. Don’t order to be kept. Hold on to it.”
Amazon has long argued that Future violated the terms of the 2019 deal, when the US firm invested $200 million in a Future unit.
The US company’s position has so far been supported by an arbitrator in Singapore and by courts in India.
Future, the country’s second-largest retailer, has failed to complete the sale of its $3.4 billion retail assets to rival since 2020 due to successful legal challenges by Amazon, which the Indian conglomerate argues has made with some non-profits. breached the competing contractual terms that both parties had entered into. Future denies any wrongdoing.
Future told exchanges this month that it was unable to pay its lenders Rs 3,500 crore ($470 million) on December 31 because it could not sell certain smaller stores because of a dispute with Amazon. It had hoped to use the 30-day grace period to resolve the situation.
In addition, banks are bound by law to classify futures accounts as a “non-performing asset” or NPA, and declare it as a defaulter, further complicating the debt-ridden company’s financial position. It becomes
Sources said that Future was preparing a vision in the Supreme Court within a few days to urge judges to restrain its lenders from taking any coercive steps and extend the timelines for selling their small stores and clearing their dues. .
Future’s 1,700 outlets include around 900 small-sized stores, with the rest being large-format hypermarkets and fashion outlets.
Besides, Future may also ask judges to direct the country’s central bank to extend the regulatory grace period by 30 days and ask lenders not to declare it as NPA, a source said.
The sources declined to be identified because the plans are not public. Major bankers Future, State Bank of India, Bank of Baroda and Bank of India and the RBI did not immediately respond to requests for comment.
Even the future did not respond.
Future’s plans signal a growing crisis at the retail conglomerate, which has said it fears liquidation and the loss of more than 27,000 jobs at its main retail arm, Future Retail, if its asset sale plans to rival. Reliance Industries fails.
A banker with exposure to futures said that if futures do not make payments by the end of January, lenders will be forced to make financial provisions in line with the regulations in their books, unless “there is a legal angle and the court takes it up”. Don’t order to be kept. Hold on to it.”
Amazon has long argued that Future violated the terms of the 2019 deal, when the US firm invested $200 million in a Future unit.
The US company’s position has so far been supported by an arbitrator in Singapore and by courts in India.
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