InvestorQ : Why do banks want to walk away from debt recast they have agreed upon for Future Group?
diksha shah made post

Why do banks want to walk away from debt recast they have agreed upon for Future Group?

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Riya Dwivedi answered.
3 weeks ago
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Let me clarify that banks have not walked away. They have only said that they will withdraw the debt recast plan once the merger deal with Reliance Retail goes through. Currently, the deal is struck due to problems created by Amazon, which is keen not to see Reliance entering the retail space in India.

As per the debt recast plan, banks agreed to extend the tenure of loans by another 2 years to help Future group get through the crisis till the merger deal takes place. Former ICICI CEO, K V Kamath, had steered the RBI approved committee that passed the recast plan. Banks have emphasised that the recast was a Plan-B till the time the Rs.24,713 crore deal with Reliance Retail fructified.

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