FRL’s meetings of shareholders & creditors illegal, says Amazon

14 April 2022, Mumbai:

Amazon has warned Future Retail against holding shareholder and creditors meetings to approve the sale of retail assets to Reliance Retail. The US e-commerce giant has termed these meetings illegal and said, they would not only breach 2019 agreement but also violate a Singapore arbitral tribunal’s injunction on the sale of FRL’s assets to Reliance Retail.

A Singapore International Arbitration Centre (SIAC) arbitrator had in October 2020 restrained FRL from signing a deal with Reliance Retail until the outcome of the Amazon’s petition was finalized. It had warned the retailer against acting contrary to the ruling.

The meetings of FRL are scheduled on April 20 and 21 as the National Company Law Tribunal (NCLT) allowed the retailer to hold these meetings in February for considering a scheme of arrangements to sell its assets to Reliance Retail.