In the latest update in the Future-Reliance-Amazon saga, the Delhi High Court blocked the $3.4bn deal of Future Retail’s acquisition by Reliance Retail on Tuesday after Amazon raised objections. The deal had gotten approval from the Competition Commission of India, the SEBI and the stock exchange with only the National Company law Tribunal (NCLT) left to give the nod. Earlier in December, the Delhi High Court cleared the Reliance-Future deal but allowed Amazon to oppose it in legal forums. Justice J. R. Midha said, “This court is of the clear view that the (arbitration) order … is enforceable. All the concerned authorities are directed to maintain status quo.” Amazon is contesting the deal based on a 2019 deal it had with a unit of Future Group, which contained clauses prohibiting the Indian group from selling them to anyone on a “restricted persons” list including Reliance. After Future Retail’s said that it was not bound by an arbitrator’s order, Amazon last month urged the High Court in New Delhi to enforce it.

Future Retail’s 5.6% 2025s are down 6.9 cents to 79.67 cents on the dollar this morning. The company is currently shoring up cash to pay the second coupon on its dollar bonds, after missing a coupon payment for the second time on the scheduled date of January 29. It has however vouched to make the payment within the 30-day grace period.

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