In a regulatory filing on 23.04.2022, Reliance Industries Limited has intimated to the BSE Ltd. and National Stock Exchange of India Ltd. that their scheme of arrangement with Future Group of companies 'cannot be implemented', as secured creditors of Future Retail Limited ("FRL") have voted against the scheme in the Shareholder's meeting held from 20th April to 23rd...
In a regulatory filing on 23.04.2022, Reliance Industries Limited has intimated to the BSE Ltd. and National Stock Exchange of India Ltd. that their scheme of arrangement with Future Group of companies 'cannot be implemented', as secured creditors of Future Retail Limited ("FRL") have voted against the scheme in the Shareholder's meeting held from 20th April to 23rd April 2022.
BACKGROUND
FRL is the flagship company of the Future Group of companies that operates popular retail chains such as Big Bazaar, Foodhall, Easyday Club, WH Smith et al. In August 2020, FRL became part of Rs. 24,713 Crores worth deal wherein Future Group had intended to sell nineteen of its companies operating in retail, wholesale, logistics and warehousing segments to Reliance Retail Ventures Ltd. ("RRVL"), a subsidiary of Reliance Industries Limited. All these companies were to consolidate into one entity named 'Future Enterprises Limited'. The National Company Law Tribunal, Mumbai Bench vide an order dated 28.02.2022 had permitted FRL to conduct its Shareholder's meeting. Accordingly, a Shareholder's meeting was convened by FRL from 20th April to 23rd April 2022 for seeking approval from its shareholders for its scheme of arrangement with Reliance.
OUTCOME OF THE SHAREHOLDER'S MEET
As per these results, the shareholders and unsecured creditors of FRL voted in favour of the scheme. However, the secured creditors of FRL voted against the scheme. The lenders of FRL include Bank of India, Axis Bank, Bank of Baroda, Punjab National Bank, the Union Bank of India, Corporation Bank, Central Bank of India and Andhra Bank.
FRL'S INTIMATION TO THE STOCK EXCHANGES
After Reliance called off the scheme, FRL in compliance of the provisions of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, also intimated to the BSE Ltd. and National Stock Exchange of India Ltd. that the scheme of arrangement with Reliance cannot be implemented.