SC agrees to hear Future Retail’s case against lenders declaring company as NPA
Mumbai: The Supreme Court has agreed to hear Future Retail Ltd’s petition to stop its lenders from declaring the business a non-performing asset for defaulting on its payments.
The Supreme Court also wanted to hear Amazon in the case, but Future Group lead lawyer Mukul Rohatgi told the court that the case was unrelated to Amazon.
On Tuesday, Future Group had moved the SC against the lenders to avoid being called NPA.
Earlier in January, Future Group lenders had approached the Reserve Bank of India (RBI) asking for an exemption from labeling their loans to the retailer as NPA.
Future Retail Ltd officially rejected Amazon’s offer of financial support on Tuesday, saying the valuation of its assets at ₹7,000 crore is less than that offered by Reliance Industries Ltd and is well below what the Indian retailer needs to pay lenders
In the absence of any further reworking of Amazon’s proposal, currently the only hope for the cash-strapped Future Group is an extension of the 30-day stay of the NPA label by the Supreme Court.
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