Lenders lay groundwork for restructuring of Future’s debt

Lenders to Future group have signed inter-creditor agreements (ICA), paving the way for a potential restructuring of the group’s stressed loans, two people aware of the development said.

The move by the lenders, comprising a clutch of banks, is part of a contingency plan to cope with a possible collapse or inordinate delay of Reliance Industries Ltd’s (RIL’s) planned acquisition of Future group’s assets because of Amazon.com Inc.’s legal challenge, the people said, requesting anonymity.

Amazon, an investor in Future Coupons Pvt. Ltd, is seeking to stall the deal, citing breach of a non-compete agreement.

Banks have time till December 31 to agree on a resolution plan if they wish to restructure these loans, according to norms released by the Reserve Bank of India in August.