India’s Supreme Court ruled in favor of Amazon by halting the Reliance Retail – Future Retail $3.4bn deal after agreeing with Amazon’s petition. This decision by the top court overrules the ruling by the Delhi High court which lifted the stay on the deal two weeks ago. Bloomberg reports that the latest verdict gives a legal advantage to Amazon which had earlier gotten an interim stay from the Singapore arbitration tribunal last October and puts Future Retail in a precarious position as it is struggling to pay debt and has warned of insolvency. Future Retail made its coupon payment of $14mn on its dollar bond last Friday within the grace period helping its bonds move higher. Its 5.6% dollar bonds due 2025 were down over 2 cents to ~86 cents on the dollar.
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