Banks To Lay The Groundwork For Bad Debts
As future’s group have a loan of $3 Billion its lenders are signing an inter-creditor agreement. It will create a progressive way of a restructuring of stressed loans of future’s group. As Reliance group was about to acquire the assets of Future’s group this plan can be collapsed by the legal challenge of Amazon company.
Amazon is one of the investors of the Future’s Group. It is done by Amazon so that some of the other way the deal can be postponed and it is claiming that the non-compete agreement has been broken.
Reserve Bank of India has issued some norms which have provided banks with a deadline of December 31. Within this time they have to come up with a resolution or else the restructuring of loans won’t be possible. It was released by RBI in August. To implement these plan they have been provided a time of 6 months.
Future’s Group runs a retail outlet of 1500, it also includes Big Bazaar across the country. Future’s group have taken a loan of $3 Billion.
Once a deal which seemed to look a sealed deal between Future’s Group and Reliance Industries has now turned into a legal battle between Reliance Industries and Amazon.
As the companies need to complete the transaction and will have to complete the deal as a long delay in the deal could deploy the quality of the assets. Both the companies Reliance Industries and Amazon both have announced that they will be completing the deal but will make some of the other changes.
As they do not want to spoil the asset quality of Future Group. It is also said that the completion of the deal will take 5 more months. It is also said that a one-time restructuring plan is being created with banks which would workout with both the companies. One of the Bank members has said that they do not want to show or have a wish to show any defaults in their books.
Related News: https://www.dialabank.com/news/deadline-will-be-extended-for-banks-by-rbi-for-the-new-guideline/