Skip to content

A Creditor Revolt Scuttled Ambani’s $3.2 Billion Retail Deal

  • Favorable terms to overseas bondholders were the dealbreaker
  • Reliance can bid for Future Retail assets under bankruptcy
A Big Bazaar hypermarket, operated by Future Retail Ltd., in Mumbai. 

A Big Bazaar hypermarket, operated by Future Retail Ltd., in Mumbai. 

Photographer: Dhiraj Singh/Bloomberg
Updated on

It was a contentious plan to repay overseas bondholders in full that brought what would have been India’s biggest retail deal to a grinding halt. 

Debt-laden Future Retail Ltd.’s offshore bondholders -- a relatively smaller part of the creditor pool -- were promised 100% payment in the rescue offer from billionaire Mukesh Ambani, according to people with knowledge of the matter. Indian lenders were asked to take a haircut of as much as 66%, the people added, asking not to be identified discussing confidential information.