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The National Company Law Tribunal (NCLT) on Monday allowed Reliance Retail Ventures’ creditors and shareholders to hold meetings to seek approval for the company’s proposed Rs 24,700 crore deal with Future Group. The NCLT’s Mumbai bench allowed the application by Reliance Retail’s creditors and shareholders to convene a meeting seeking approval.
On June 22, the NCLT had reserved its order on the plea by Reliance Retail seeking consensus of shareholders for the company’s deal with Kishore Biyani-led Future Group.
A similar petition by the Future Group was allowed by the NCLT, paving its way for meetings of creditors and shareholders in order to seek approval for the transaction.
Moreover, Reliance Retail, on October 1, extended the long-stop date for the completion of its deal with Future Group due to the latter’s ongoing legal battle with Amazon. The long-stop date for completion was extended by another six months to March 2022.
Long stop is an established practice in mergers and acquisitions, which refers to a timeframe when all the conditions precedent for a transaction need to be fulfilled and the transaction completed.