The NCLT had given the go-ahead to convene shareholders’ and creditors’ meetings of the respective Futures group companies to approve the merger and transfer scheme of the company to Reliance Retail.

Listed companies of Kishore Biyani-led Futures group on Saturday informed exchanges of meetings of their respective shareholders and creditors to be convened on April 20 and 21 to get their approval for the Rs 24,713-crore deal with Reliance Retail.

Listed entities, including Future Enterprises Ltd, Future Retail Ltd, Future Consumer Ltd and Future Supply Chain, briefed exchanges on data and other procedures for the virtual meetings of shareholders and creditors.

The meetings will be held virtually via video conferencing and other audiovisual means, the addendum said.

According to the order passed by the Mumbai Bank of the National Company Law Tribunal (NCLT) on February 28, the shareholders’ meeting was to be held on April 20. The meeting to obtain creditors’ approval was to be held the following day, April 21, 2022.

The NCLT had given the go-ahead to convene shareholders’ and creditors’ meetings of the respective Futures group companies to approve the merger and transfer scheme of the company to Reliance Retail.

As part of the deal, Future Enterprises Limited is Reliance Retail’s acquiring company.

Future Group’s 19 retail, wholesale, logistics and warehousing businesses would be consolidated into one entity, FEL, and then transferred to Reliance.

In August 2020, Future Group had announced the Rs 24,713 crore deal to transfer its retail, wholesale and logistics branches to Reliance Retail.

However, the deal could not be closed as Future’s warring partner, Amazon, went to court for breach of some contracts. Future denies any wrongdoing.
After the deal was stuck in a series of lawsuits and arbitrations, the long shutdown date for the settlement has already been extended by six months until September 30, 2022 by Reliance, FRL had said last week.

This is the third timeline extension by Reliance Retail Ventures Ltd (RRVL), the retail arm of Reliance Industries, for the completion of its Rs 24,713 crore deal with the Futures group.

Previously, RRVL had extended the timeline from September 30, 2021 to March 31, 2022. The first long shutdown date was March 31, 2021, which was extended to September 30, 2021.

Earlier in February, Reliance Retail had acquired the operations of at least 300 stores from Future Retail and offered jobs to its employees after the Kishore Biyani-led group failed to make rent payments to landlords.

Later, Future Retail Ltd had said on March 16 that it has “committed” to undo the acquisition of its stores by Reliance Retail and will take any action that may be necessary to seek value adjustments.

The Kishore Biyani-led company also said the Reliance Group’s move came as a “surprise”.


This post Future Group Firms To Call Shareholders Meeting, Creditors Meeting In April was original published at “https://www.financialexpress.com/industry/future-group-firms-to-convene-shareholder-creditors-meeting-in-april/2465518/”

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