Lenders to Future Retail , the company being fought over by Reliance Industries and Amazon.com Inc, have told India’s Supreme Court that its assets should be put up for auction after it missed payments.
They also said they have started classifying loans to the country’s second-largest retailer as non-performing and would have to make combined provisions of 80 billion-90 billion rupees ($1.1 billion-$1.2 billion) due to the non-payment.
“Let it be subjected to an open bid…This is the only solution,” Rakesh Dwivedi, a lawyer acting for 30 or so of Future’s lenders, told the Supreme Court judges, citing the prolonged litigation so far between Future and Amazon.
Dwivedi added that Future’s two suitors – Amazon and Reliance – could then bid for the retailer’s assets.
The court did not hand down any decisions on Thursday and said it will hear the matter again in due course. Future declined to comment.
Future failed to complete a planned $3.4 billion sale of its retail assets to Reliance after business partner Amazon successfully argued in arbitration and in court that the Indian retail giant violated certain non-compete contractual terms.