Future Retail Asks Amazon to Verify Willingness to Fund Rs 3,500cr to Repay Lenders

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New Delhi, Jan 22 (IANS) Future Retail’s impartial administrators have requested e-commerce large Amazon whether it is prepared to fund Rs 3,500 crore to repay the retail firm’s lenders.

Notably, the query to Amazon was posted after the e-commerce large in an earlier letter to impartial administrators objected to the sale of Future Retail Ltd (FRL)’s small-format shops.

“FRL is in want for money infusion urgently so as to repay its lenders. FRL is required to pay its lenders Rs 3,500 crore by January 29, failing which it is going to be labeled as an NPA,” mentioned the letter dated January 21.

“Since you’re objecting to the sale of small-format gross sales, the proceeds of which had been for use to repay lenders and thereby keep away from NPA classification, please affirm that you’re prepared to fund this quantity by Monday by way of an unsecured, long-term mortgage, subordinated to FRL’s present lenders or some other mutually appropriate and legally acceptable construction.”

Apart from, the letter to e-commerce large mentioned, “When you accomplish that, FRL will use such funds so as to repay FRL’s present lenders. Alternatively, you’re additionally free to interact with the lenders in order that we don’t fall foul of our OTR course of or obligations.”

Accordingly, the impartial administrators requested the e-commerce large to offer the confirmations for such funds by January 22, 2022.

“Upon getting supplied these confirmations in writing and conform to infuse Rs 3,500 crore so as to repay FRL’s lenders by January 29, 2022, we might be completely satisfied to evaluate an in depth proposal and meet Amazon India Head Abhijeet Muzumdar.”

Moreover, the letter requested Amazon, “Coming to the precise facets of your proposal — we be aware that your letter refers to a possible transaction between Samara Capital and FRL as a ‘answer’.”

“On this regard, you’re requested to substantiate if Amazon can act on behalf of Samara Capital and has the authority to barter and finalise such transaction on its behalf.”

It requested Amazon to substantiate the construction for the proposed transaction, and that the Supervisor of Samara Capital is owned-and-controlled by resident Indians.

“As you understand, FRL is within the multi-brand retail sector and FDI on this sector is restricted. You’re additionally conscious that Amazon’s transaction in Future Coupons, has resulted in regulatory scrutiny, together with by the Competitors Fee of India, in addition to enquiries by the Enforcement Directorate.”

“It’s subsequently important that any funding being proposed is in compliance with all relevant legal guidelines, together with FDI legal guidelines, CCI laws and SEBI laws, and that any such transaction shouldn’t increase additional regulatory scrutiny.”

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