Future Group Creditor Concerns Mount as Amazon Dispute Drags On
Some investors in Amazon’s Indian partner Future Group are getting cold feet as a dispute between the two drags on.
(Bloomberg) -- Some investors in Amazon.com Inc.’s Indian partner Future Group are getting cold feet as a dispute between the two drags on.
More signs of creditor unease emerged this week. Major money manager Kotak Mutual Fund said it had sold part of its bond holdings of group firm Future Lifestyle Fashions Ltd. at a 25% discount in the secondary market.
Amazon and Future Group, whose assets Reliance Industries Ltd. recently agreed to buy, are locked in a disagreement over that deal. An Indian court adjourned hearings this week involving the matter until Nov. 19. Amazon says Future violated a contract with the sale to its rival and wants to halt it, while the indebted Mumbai-based firm says it would collapse if the transaction were to fail.
The dollar bonds of Future Retail Ltd., the group’s flagship company, are still trading in stressed territory after tumbling last month on the spat.
©2020 Bloomberg L.P.