Amazon has written to independent directors of Future Retail Ltd (FRL), confirming that Samara Capital "remains interested and committed" to invest Rs 7,000 crore for buying all retail assets of the debt-ridden company.
Amazon had approached the independent directors of FRL reiterating its willingness to assist the Mumbai-based company in addressing its financial concerns. In response, the independent directors had asked Amazon to confirm by January 22 that it will infuse Rs 3,500 crore into the cash-strapped retailer so as to pay FRL's lenders by January 29, 2022.
Amazon - in its reply on January 22 - said "we confirm that based on your letter dated January 21, 2022, Samara Capital has once again reiterated to us that they remain interested and committed to lead and take forward the term sheet dated June 30, 2020, signed amongst Samara, FRL and the Promoters of FRL
The Samara Term Sheet provides for an acquisition of all retail assets of FRL, including the "small store formats" comprising the 'Easy Day', 'Adhaar' and 'Heritage' brands, through an Indian owned and controlled entity structure led by Samara and supported by Amazon," said.
Amazon said the transaction envisaged in the Samara Term Sheet would ensure availability of funds in FRL at the earliest, through an asset sale and an equity infusion, which would be a direct antidote to FRL's indebtedness.
Amazon, in its latest letter, asserted that its engagement will not affect the binding nature of the injunctions passed in the Arbitration Proceedings and by Indian Courts, and said the new transaction will have the understanding that "the transaction with the Mukesh Dhirubhai Ambani (Reliance Industries Limited) group (MDA Group) will not proceed and not be acted upon; and all assistance would be done through legally compliant structures".