Kishore Biyani-led Future group might consider resolving its dispute, arising out of its deal with Reliance Retail, amicably with erstwhile partner Amazon.
This comes as the latter is looking to enforce the stay order granted by the Singapore International Arbitration Centre on Sunday, asking Future group to not proceed with the deal.
But with time running out for the debt-laden Future group, which has defaulted on payments to lenders, a mutual settlement appears to be the best option, said lawyers and experts Business Standard spoke to.
“Future group will look for an out-of-court settlement with help from Reliance in the Amazon matter. Amazon has gone to court to expedite the issue it has with the Future group. A delay in the transaction is something the Future group and Reliance cannot afford. This may push them to reach a settlement with Amazon and consent terms could be filed in court,” corporate lawyer HP Ranina said.
Last year, Amazon had invested nearly Rs 1,500 crore to buy a 49 per cent stake in one of Future’s unlisted firms, Future Coupons, with the right to buy into flagship Future Retail after a period of three to 10 years.
Future Coupons owns 7.3 per cent stake in Future Retail.
According to the arbitration proceedings in Singapore, Amazon said Reliance had featured in the negative list of companies with whom Future was forbidden from transacting when the deal was signed in 2019.
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