New Delhi: heroine has confirmed this by writing a letter to the independent directors of Future Retail Limited (FRL) Samara Capital According to sources, the debt-ridden company remains “interested and committed” to invest Rs 7,000 crore to buy all retail assets and asked the retail firm to submit the current due diligence report to Samara by Sunday.
On January 19, Amazon had approached independent directors of FRL and reiterated its willingness to assist the Mumbai-based company in addressing its financial concerns. In response, the independent directors had asked Amazon to confirm by January 22 that it would invest Rs 3,500 crore in the cash-strapped retailer by January 29, 2022, to repay the lenders of FRL.
Amazon – in its reply on January 22 – said, “We confirm that based on your letter dated January 21, 2022, Samara Capital has once again reiterated to us that they are interested and forward the term sheet of June 30.” Committed to enhance and carry forward. 2020, signed between the promoters of Samara, FRL and FRL…”
The term sheet contemplates a purchase of Rs 7,000 crore, according to the letter, a copy of which was seen by PTI.
“Relevantly, the Samara term sheet provides for the acquisition of all retail assets of FRL, including ‘Easy Day’, ‘Aadhaar’ and ‘Legacy’ brands in a “small store format”, which is Indian-owned and controlled. The entity structure is led by Samara and backed by Amazon,” the e-commerce major said in the letter.
Amazon said the transaction envisaged in the Samara term sheet will ensure the availability of funds in FRL through an asset sale and an equity infusion as soon as possible, which will be a direct counterweight to FRL’s indebtedness.
Emails sent to Amazon and Future Group did not elicit any response.
Amazon, in its latest letter, stressed that its engagement would not affect the binding nature of arbitration proceedings and injunctions passed by Indian courts, and said the new transaction would have the understanding that “transactions with (Mukesh Dhirubhai Ambani)Reliance Industries Limited) the group (MDA group) will not proceed and will not be acted upon; And all assistance will be done through legally compliant structures”.
Future and Amazon have been locked in a bitter legal tussle after US e-commerce giant Future Group dragged Future Group to arbitration at the Singapore International Arbitration Center (SIAC) in October 2020, arguing that FRL had struck a deal. had breached their contract by entering. selling your assets to billionaires Mukesh Ambani24,713 crore on the basis of decline in the sales of Reliance Retail.
Earlier this month, Future Retail said it had missed the due date of payment of Rs 3,494.56 crore to banks and lenders as it could not sell assets due to an ongoing lawsuit with Amazon affecting its monetization plans .
Notably, in December, India’s fair trade regulator Competition Commission (CCI) suspended the 2019 approval for Amazon’s deal to acquire 49 per cent stake in FRL’s promoter Future Coupons Pvt Ltd (FCPL), while 202 was fined Rs. crore on the e-commerce major.
The CCI order has been challenged by Amazon in the National Company Law Appellate Tribunal, which has issued notices to the Fair Trade Regulator and the FCPL. NCLAT It has been directed to list the matter for next hearing on February 2.
On January 19, Amazon had approached independent directors of FRL and reiterated its willingness to assist the Mumbai-based company in addressing its financial concerns. In response, the independent directors had asked Amazon to confirm by January 22 that it would invest Rs 3,500 crore in the cash-strapped retailer by January 29, 2022, to repay the lenders of FRL.
Amazon – in its reply on January 22 – said, “We confirm that based on your letter dated January 21, 2022, Samara Capital has once again reiterated to us that they are interested and forward the term sheet of June 30.” Committed to enhance and carry forward. 2020, signed between the promoters of Samara, FRL and FRL…”
The term sheet contemplates a purchase of Rs 7,000 crore, according to the letter, a copy of which was seen by PTI.
“Relevantly, the Samara term sheet provides for the acquisition of all retail assets of FRL, including ‘Easy Day’, ‘Aadhaar’ and ‘Legacy’ brands in a “small store format”, which is Indian-owned and controlled. The entity structure is led by Samara and backed by Amazon,” the e-commerce major said in the letter.
Amazon said the transaction envisaged in the Samara term sheet will ensure the availability of funds in FRL through an asset sale and an equity infusion as soon as possible, which will be a direct counterweight to FRL’s indebtedness.
Emails sent to Amazon and Future Group did not elicit any response.
Amazon, in its latest letter, stressed that its engagement would not affect the binding nature of arbitration proceedings and injunctions passed by Indian courts, and said the new transaction would have the understanding that “transactions with (Mukesh Dhirubhai Ambani)Reliance Industries Limited) the group (MDA group) will not proceed and will not be acted upon; And all assistance will be done through legally compliant structures”.
Future and Amazon have been locked in a bitter legal tussle after US e-commerce giant Future Group dragged Future Group to arbitration at the Singapore International Arbitration Center (SIAC) in October 2020, arguing that FRL had struck a deal. had breached their contract by entering. selling your assets to billionaires Mukesh Ambani24,713 crore on the basis of decline in the sales of Reliance Retail.
Earlier this month, Future Retail said it had missed the due date of payment of Rs 3,494.56 crore to banks and lenders as it could not sell assets due to an ongoing lawsuit with Amazon affecting its monetization plans .
Notably, in December, India’s fair trade regulator Competition Commission (CCI) suspended the 2019 approval for Amazon’s deal to acquire 49 per cent stake in FRL’s promoter Future Coupons Pvt Ltd (FCPL), while 202 was fined Rs. crore on the e-commerce major.
The CCI order has been challenged by Amazon in the National Company Law Appellate Tribunal, which has issued notices to the Fair Trade Regulator and the FCPL. NCLAT It has been directed to list the matter for next hearing on February 2.
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