Reliance Industries Ltd (RIL) recently agreed to extend operational support to Future Retail Ltd to prevent its collapse while its ₹24,713-crore deal to buy the cash-strapped retailer’s assets hangs in balance. Reliance Retail Ventures (RRVL) has also extended the deadline for completion of the purchase by six months to accommodate for delays caused by a legal spat between Future and Amazon.
RRVL had last August entered into an arrangement to buy Future Group’s retail assets on a slump sale basis.Reliance Industrieshas recently agreed to extend operational support to Future Retail to prevent its collapse while its ₹24,713-crore deal to buy the cash-strapped retailer's assets hangs in balance. Reliance Retail Ventures has also extended the deadline for completion of the purchase by six months to accommodate delays caused by a Future-Amazon legal spat.#
“Pursuant to the provisions of scheme and other transaction documents executed in relation thereto, RRVL has in exercise of the right provided thereunder, extended the timeline for ’Long Stop Date’ from March 31, 2021, to September 30, 2021, which has been duly acknowledged by Reliance Retail and Fashion Lifestyle Limited, wholly-owned subsidiary of RRVL,” Future Retail said in a regulatory filing.
Long stop refers to a timeframe in which all the conditions precedent for deal are met for the transaction to be completed.
The deal is facing legal hurdles and a decision from the Supreme Court is pending over the petition filed by e-commerce major Amazon. The apex court has scheduled a hearing on the case on April 27.
Meanwhile, the Future Group has launched a two-hour delivery service for apparel and groceries on its website or mobile app to expand into the booming e-commerce space.
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