The Future Group has challenged its own lenders in the Supreme Court to avoid being named a defaulter for missing payments, citing its ongoing dispute with partner Amazon, Reuters has reported.
Future, the country's second-largest retailer, has since 2020 failed to complete its $3.4 billion retail asset sale to Mukesh Ambani-led Industries due to successful legal challenges by Amazon, which argues the group violated certain non-compete contractual terms the two sides had. Future denies any wrongdoing.
According to the report, Future has urged the Supreme Court to ask lenders and the Reserve Bank of India to grant more time to execute the sale.
Future told Indian exchanges this month it was unable to pay Rs 3,500 crore ($470 million) it owed to its lenders on Dec 31 as it could not sell certain small stores due to the dispute with Amazon. It had hoped to use a 30-day grace period to resolve the situation.
Beyond that, banks are bound by Indian law to classify Future's accounts as a "non-performing asset", or an NPA, and declare it as a defaulter, further complicating the financial position of the debt-laden company.
Future's 1,700 outlets include roughly 900 small-sized stores, with the rest being large-format hypermarkets and fashion outlets.
Amazon has long argued that Future violated the terms of a 2019 deal they had signed when the U.S. firm invested $200 million in a Future unit. The U.S. company's position has so far been backed by a Singapore arbitrator and Indian courts.
Future, the country's second-largest retailer, has since 2020 failed to complete its $3.4 billion retail asset sale to Mukesh Ambani-led Industries due to successful legal challenges by Amazon, which argues the group violated certain non-compete contractual terms the two sides had. Future denies any wrongdoing.
According to the report, Future has urged the Supreme Court to ask lenders and the Reserve Bank of India to grant more time to execute the sale.
Future told Indian exchanges this month it was unable to pay Rs 3,500 crore ($470 million) it owed to its lenders on Dec 31 as it could not sell certain small stores due to the dispute with Amazon. It had hoped to use a 30-day grace period to resolve the situation.
Beyond that, banks are bound by Indian law to classify Future's accounts as a "non-performing asset", or an NPA, and declare it as a defaulter, further complicating the financial position of the debt-laden company.
Future's 1,700 outlets include roughly 900 small-sized stores, with the rest being large-format hypermarkets and fashion outlets.
Amazon has long argued that Future violated the terms of a 2019 deal they had signed when the U.S. firm invested $200 million in a Future unit. The U.S. company's position has so far been backed by a Singapore arbitrator and Indian courts.
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