UPDATE 2: 8:37 p.m. ET 2/22/2021: The Supreme Court of India at a hearing yesterday, Feb. 22, issued an
order preventing sanction approval by the National Company Law Tribunal (NCLT) of Future Group’s proposed scheme of arrangement to facilitate the INR 247.13 billion ($3.38 billion) merger with Reliance Industries Ltd., according to details of a Future Retail
announcement to the BSE Ltd. on the same day.
The Supreme Court ruled in agreement with the Special Leave Petition filed by Amazon.com NV Investment Holdings LLC, overturning the Feb. 8
ruling of the Division Bench of the Delhi High Court, which had stayed until Feb. 26 the order passed by the Single Judge of the Delhi High Court.
The Single Judge had on Feb. 2
directed all parties including regulatory authorities to maintain status quo - including to halt proceedings in the scheme between Future Group and Reliance Industries pending before the NCLT Mumbai - pending pronouncement of the order of the Single Judge, the Future Retail announcement details.
The Supreme Court on Feb. 22 specifically ruled that proceedings before the NCLT will be allowed to go on, but will not culminate in any final order of sanction of the scheme.
Accordingly, the NCLT can issue directions to convene meetings of shareholders and creditors of the applicant companies, including Future Retail Ltd., to consider the scheme, the Future Retail announcement states.
The order of the Supreme Court of India has directed that a counter affidavit be filed within two weeks, and any rejoinder affidavit be filed within one week. The matter is listed for further hearing after three weeks, according to the order.
The Supreme Court order was made by Justice Rohinton Fali Nariman and Justice B.R. Gavai in the matter of SLP(C) No. 002856 - 002857 / 2021.
UPDATE 1: Future Retail $500M 5.60% Due 2025s Down 4 to 5 Points After Supreme Court Directs NCLT to Not Pass Final Order on Merger With Reliance
UPDATE 1: 3:19 a.m. ET 2/22/2021: Future Retail’s $500 million 5.60% due 2025 notes were indicated 4 to 5 points down to 85/88, from 90/91 earlier today (Feb. 22), after the Supreme Court of India ordered the National Company Law Tribunal (NCLT) to not pass a final order on Future Group’s proposed INR 247.13 billion ($3.38 billion) merger with Reliance Industries Ltd., according to two buysiders and a sellside source.
Original Story 2:57 a.m. UTC on Feb. 22, 2021
BREAKING: Supreme Court of India Issue Notice to Future Group; Allows NCLT Proceedings
The Supreme Court of India today (Feb. 22) issued notice to Future Group, agreeing to hear a Special Leave Petition filed by Amazon.com NV Investment Holdings LLC against Feb. 8
judgment that ordered a stay on the status quo over the scheme of arrangement for Future Group’s proposed INR 247.13 billion ($3.38 billion) merger deal with Reliance Industries Ltd., according to the hearing attended by Reorg.
Meanwhile, the two-judge bench comprising Justice Rohinton Fali Nariman and Justice B R Gavai, allowed the proceedings at National Company Law Tribunal (NCLT), to continue, but directed the tribunal not to pass any final order, according to the court proceedings.
More to follow...