Bank of India (BOI) has dragged Future Retail to bankruptcy court to recover a INR 35bn ($460mn) default on the one-time restructuring scheme between the bank and the retailer. Several Future group companies, including Future Retail, had entered into agreements with creditors for relief funds due to the pandemic in 2020. Earlier this month, Future Retail reported a default of INR 53.2bn ($697mn) to a consortium of banks which had given the retailer a deadline of March 31, 2022. Fortune India notes that if the National Company Law Tribunal (NCLT) admits BOI’s petition to initiate insolvency proceedings against Future Retail, it is likely to hold up the Reliance-Future acquisition deal. This would allow other potential buyers, including Amazon, to bid for the retailer. The update comes just days before an April 21 creditors’ meeting to vote on the arrangement proposed by Reliance Industries on the asset sale of Future Group.

Future Retail’s 5.6% 2025s were marginally higher at 52.5 cents on the dollar.

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