Amazon/Future/Reliance - the dog that didn’t bark

[protrade]

In this fight between Amazon and Reliance, why are the Banks quiet? Why aren’t they making amicus curae submissions to the court to protect their interests?

If Reliance loses this case (let’s be clear - Future is just a proxy for Reliance), Banks would be at risk, unable to recover their money! Amazon won’t cover their losses, and it’s highly unlikely someone else will step in considering how much things have shifted in last 1 year!

Banks have ₹12,000 crores at stake - and they are sitting by quietly as Amazon tries to protect its interest - harming their interest!

 

[iwillwin]

In this fight between Amazon and Reliance, why are the Banks quiet? Why aren’t they making amicus curae submissions to the court to protect their interests?

If Reliance loses this case (let’s be clear - Future is just a proxy for Reliance), Banks would be at risk, unable to recover their money! Amazon won’t cover their losses, and it’s highly unlikely someone else will step in considering how much things have shifted in last 1 year!

Banks have ₹12,000 crores at stake - and they are sitting by quietly as Amazon tries to protect its interest - harming their interest!

coz they know that reliance will win the case....

 

[protrade]

coz they know that reliance will win the case....

Well, the judgement has gone against Reliance - so why didn’t the hounds bark that night?

Like the classic Sherlock Holmes story, the hint lies in the fact that the hounds didn’t bark!

This judgement seems like it’s against Reliance - but it’s not. It’s against Future Retail!

As for Reliance, this is a massive positive. They got full insider access to Future for an entire year - and now they will say they are walking away from the transaction with Future Retail, because they don’t want these complications.

Moment Reliance walks away, Future Retail is dead - and the shares will collapse - forcing lenders to invoke pledged shares and sell.

The Biyanis will be massive losers - but Mukesh Ambani can now buy the same asset at much cheaper price - directly from the banks!

My guess is that the judgement today will likely save Reliance at least a Billion dollars in terms of acquisition price of Future Retail, and it will come straight from pockets of the Biyanis.

 

[Vmaster369]

reliance lost so i guess Amazon wins
Sc has just haulted transaction not cancelled it

 

[Dr. Jan Itor]

Selling shares is also not that simple... banks can't simply invoke the pledge... long process under IBC and NCLT... also on top of that, Amazon can again go tot courts... long drawn process... for quicker extrication, Biyani can make peace with Amazon who was anyway looking for Wipro or Tata assistance in the brick and mortar stores of FRL...
Btw it still doesn't explain why banks are quiet... Even if they managed to invoke the pledge and sell shares to RIL, they still take steep haircuts and losses to the tune of "billion dollars" you alluded to in your last post Protrade sir... so the question remains - why??

 

[protrade]

Banks don’t need any permission or approval to invoke pledges. And they don’t take hair cuts on pledged shares.

I expect that Reliance will walk away as the ultimate beneficiary of this entire fight between Amazon and Future. And the Biyanis will be the losers overall.

As for Amazon, they can’t really expect approval for a friendly acquisition of Future - no way. In fact, CCI could revoke its approval for the original 2019 transaction - for fraudulent misrepresentation and suppression of facts. That threat still hasn’t gone away, remember.

When all is said and done, Reliance will own Future, and likely for much cheaper.