Independent directors of Future Retail Ltd (FRL) have asked Amazon to confirm by Saturday that it will infuse ₹3,500 crore into the cash-strapped retailer in order to repay FRL’s lenders by January 29, 2022, according to sources.
Responding to Amazon’s letter, the independent directors of FRL said while they are willing to assess proposals that are comprehensive and provide a solution for banks, employees, vendors, and other stakeholders, and that any assessment of proposals will be subject to FRL’s legal obligations.
On January 19, Amazon had written to the independent directors of FRL reiterating its willingness to assist the Mumbai-based company in addressing its financial concerns.
The independent directors, in their letter to Amazon on Friday, said FRL is in need for cash infusion urgently, and is required to pay ₹3,500 crore by January 29, 2022, failing which it will be classified as an NPA (non-performing asset).
“Since you are objecting to the sale of small-format sales, the proceeds of which were to be used to repay lenders and thereby avoid NPA classification, please confirm that you are willing to fund this amount by Monday (January 24) through an unsecured, long-term loan, subordinated to FRL’s existing lenders or any other mutually suitable and legally acceptable structure.
“If you do so, FRL will use such funds in order to repay FRL’s existing lenders,” the letter, a copy of which was seen by PTI, said.
They added that Amazon is also free to engage with the lenders, so that FRL does not “fall foul of our OTR process or obligations”.
They further asked Amazon to provide the confirmations sought by tomorrow January 22, 2022, following which they are open to assessing a detailed proposal. LiveMint