Fighting Amazon means we need more time to pay the banks, says Future Retail: 10 points
Even as Future Group got into a dispute with Amazon.com, it challenged its own lenders in the Supreme Court.
Let us take a look at the full Future-Amazon dispute and the latest twist in the story.
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Future Group on Tuesday challenged its own lenders in the Supreme Court in an attempt to avoid being seen as bankrupt for lack of payments, according to a Reuters report.
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Future Group cited its ongoing dispute with partner Amazon.com Inc, according to a legal filing seen by Reuters.
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The country’s second-largest retailer, Future, has as of 2020 been unable to finalize the sale of $3.4 billion worth of retail assets to a rival due to conflicts with Amazon.
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Amazon argued that Future Group had violated certain non-compete contractual provisions that the two parties had. Future denies any wrongdoing.
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Future told exchanges this month that they could not pay 35 billion rupees or 3,500 Rs crore ($470 million) they owed their lenders on December 31 because they were unable to sell some stores small due to a dispute with Amazon.
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Future had hoped to use the 30-day grace period to resolve the situation.
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In a filing on Tuesday, Future urged the Supreme Court to ask the lenders and the Reserve Bank of India (RBI) for more time to execute the deal, Reuters reported.
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Future’s main retail arm, Future Retail, also asked the judges to cancel default notices they had received from lenders, including State Bank of India, warning of action. against the company.
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Earlier on January 8, 2022, Amazon.com filed new legal challenges in a lengthy dispute with Future Group after the Competition Commission of India (CCI) suspended a 2019 agreement between parties, resulting in their adjudication being halted. , Reuters reported earlier.
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The CCI last month suspended approval of Amazon’s 2019 deal with Future, hampering the US e-commerce giant’s attempt to block Future’s sale of retail assets to the market leader. Domestic Reliance Industries.