FRL independent directors turn down Amazon's bailout offer
They call Amazon's letters as just a game of smoke and mirrors
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New Delhi: Independent directors of Future Retail Ltd (FRL) have turned down Amazon's offer of financial support to the company through a deal with private equity firm Samara Capital, saying the offer is "plainly an attempt to buy the FRL assets on the cheap".
FRL's independent directors had last week asked Amazon if the e-commerce giant was willing to give a long-term loan to avoid default on repayment of Rs 3,500 crore loan due on January 29. Amazon replied that it was willing to financially assist Future Retail through the Samara Capital deal but the retailer must shelve Rs 24,713 crore deal with Reliance.
The independent directors of FRL, in a letter on Tuesday, said it is now clear that Amazon's letters were "just a game of smoke and mirrors".
"Accordingly, we will not be assessing any proposals from you, until an actual solution which meets FRL's capital requirements and addresses concerns of its stakeholders, in a legally-compliant manner, is tabled," said the letter, a copy of which was seen by PTI.
