Future Retail Ltd is on the verge of bankruptcy after its secured creditors rejected the Reliance deal this week. The fate of the company and management is uncertain as the Bank of India initiated insolvency proceedings last week.
Secured creditors , primarily banks and financial institutions of various listed entities of Future Group voted against the Reliance Retail deal worth ₹ 24,713 crore, according to a regulatory filing on Friday.
While more than 75 per cent of shareholders and unsecured creditors had voted in favour of the Mukesh Ambani’s Reliance Retail deal, nearly 70 per cent of secured creditors rejected the deal and the remaining a touch over 30 per cent voted in favour of it, as per the results submitted to stock exchanges.
To get the Reliance deal through, Future Retail required 75 per cent approval from its secured creditors, which it failed to get.
To prevent bankruptcy, the Future Group of companies had called meetings of their shareholders, secured and unsecured creditors to get the approval for the deal – under which it plans to sell 19 companies operating in retail, wholesale, logistics and warehousing segments to Reliance Retail Ventures Ltd (RRVL).
