New Delhi: The future group plans to challenge its own lenders at the Supreme Court to avoid Defaulter for payment missing, quoting ongoing disputes with Amazon partners, three sources to Reuters on Thursday.
The future, the second largest retailer in the country has failed to complete the sale of $ 3.4 billion in retail assets in rivals because of the successful legal challenges by Amazon, which argued that the Indian group violated the contract that did not compete uncompeted.
The future denies errors.
The future said the exchange of this month could not pay the RS 3,500 Crore ($ 470 million) owed it to the lender on December 31 because it could not sell certain small shops due to a dispute with Amazon.
Already hoped to use a 30-day grace period to resolve the situation.
In addition, banks are bound by law to classify future accounts as “non-performing assets”, or NPAs, and declare it as defaugter, then complicate the financial position of the company that is full of debt.
These sources said the future was preparing an approach to the Supreme Court in a few days to urge the judge to stop his lenders take drastic steps and extend the schedule to allow him to sell his small shops and clean up his contributions.
1,700 outlet in the future covers around 900 small-sized stores, with the rest is a large format hypermarket and fashion outlet.
Furthermore, the future also tends to ask a judge to direct the country’s central bank to extend the grace period of 30 days and request a lender not to declare it as NPA for then, one source said.
Sources refused to be identified because the plan was not public.
The main bankers to the future, the state of India, Bank Baroda and Bank of India, and the RBI did not immediately respond to a request for comments.
The future also does not respond.
The future plan signal fosters pressure on the retail group, which says it is worried about liquidation and more than 27,000 job losses in his main retail arm, retail in the future, if the plan sales of assets to rival the dependency industry.
One banker who has future exposure says lenders will be forced to make financial provisions in their books in line with regulations if the future does not pay at the end of January, except there “is the point of view and the court gave the command to be included.” Amazon has long argued that the future violates the provisions of the 2019 agreement they have signed when US companies invest $ 200 million in future units.
The position of the US company has so far been supported by the Singapore Arbitrator and court in India.