New Delhi: heroine Future Retail (FRL) has been asked to provide financial details Samara Capital for speedy due diligence, as he wishes private equity player To invest Rs 7,000 crore in Kishor Biyani-promoted company.
The cash-strapped retailer, mired in a nearly two-year legal battle with Amazon, is staring at default as the grace period to pay Rs 3,500 crore to its lenders ends on January 29. Its total liabilities to lenders are Rs. 9,119 crore for repayment of interest and principal by March 2022.
“The transaction envisaged in the Samara term sheet will ensure the availability of funds in FRL at the earliest through asset sales and equity infusion, which will be a direct counter to FRL’s indebtedness,” Amazon wrote in the letter dated January 22. Samara and Amazon believe that the transactions considered in the Samara Term Sheet can be implemented faster if independent directors and FRLs provide immediate access to FRL information and records and cooperate fully in discussions. ,
The term sheet dated June 30, 2020 was signed between the promoters of Samara, FRL and FRL. It provides for the acquisition of all of FRL’s retail assets, including a “small store format”, for Rs 7,000 crore through an Indian owned and controlled entity structure led by Samara and backed by Amazon, according to the US e-tailer.
“The term sheet was rejected. Amazon’s willingness to help FRL is a smoke-and-mirror game. Reliance 25,000 crore and etailer is offering only Rs 7,000 crore. They think we are children. We will not accept it,” Ravindra Dhariwal, one of the three-member independent directors in FRL, told TOI.
To what does Amazon compare the Samara-Amazon acquisition structure Reliance Retail and Fashion Lifestyle which announced its decision to buy FRL in August 2020 for Rs 25,000 crore, a proposed deal that Amazon has attempted to block. Amazon has argued that future-reliance The deal violates the terms of its contract with FRL and Reliance is a “banned” party.
The cash-strapped retailer, mired in a nearly two-year legal battle with Amazon, is staring at default as the grace period to pay Rs 3,500 crore to its lenders ends on January 29. Its total liabilities to lenders are Rs. 9,119 crore for repayment of interest and principal by March 2022.
“The transaction envisaged in the Samara term sheet will ensure the availability of funds in FRL at the earliest through asset sales and equity infusion, which will be a direct counter to FRL’s indebtedness,” Amazon wrote in the letter dated January 22. Samara and Amazon believe that the transactions considered in the Samara Term Sheet can be implemented faster if independent directors and FRLs provide immediate access to FRL information and records and cooperate fully in discussions. ,
The term sheet dated June 30, 2020 was signed between the promoters of Samara, FRL and FRL. It provides for the acquisition of all of FRL’s retail assets, including a “small store format”, for Rs 7,000 crore through an Indian owned and controlled entity structure led by Samara and backed by Amazon, according to the US e-tailer.
“The term sheet was rejected. Amazon’s willingness to help FRL is a smoke-and-mirror game. Reliance 25,000 crore and etailer is offering only Rs 7,000 crore. They think we are children. We will not accept it,” Ravindra Dhariwal, one of the three-member independent directors in FRL, told TOI.
To what does Amazon compare the Samara-Amazon acquisition structure Reliance Retail and Fashion Lifestyle which announced its decision to buy FRL in August 2020 for Rs 25,000 crore, a proposed deal that Amazon has attempted to block. Amazon has argued that future-reliance The deal violates the terms of its contract with FRL and Reliance is a “banned” party.
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