An independent director of Future Retail NSE -0.10% Ltd (FRL) has sought a long-term loan of Rs 3,500 crore from Amazon as the US firm opposes the sale of its small stores. Proceeds from the sale will be used to pay FRL lenders and prevent their debt from being classified as non-performing assets (NPA), they said.
“Since you object to the sale of the small sale, the proceeds of which will be used to repay the lender, thereby avoiding NPA classification, please confirm that you are willing to take an unsecured, long-term loan by Monday (January 24), subordinate to an existing lender with FRL or any other mutually appropriate and legally acceptable structure,” three of FRL’s independent directors wrote to Amazon on Friday. “If you do this, FRL will use the funds to repay FRL’s existing lenders. Alternatively, you are free to engage with lenders so we do not breach our OTR (one-time restructuring) process or obligations.” This The letter has been reviewed by ET.
Complete News Source : The Economics Times
