New Delhi: US fast food chain McDonald's on Thursday said it has reached an out-of-court settlement with estranged partner Vikram Bakshi, buying out the former partner from their joint venture that operated outlets of the chain in north and east India.
Connaught Plaza Restaurants Pvt Ltd (CPRL) is now wholly owned by McDonald's India Pvt Ltd (MIPL) and its affiliate (McDonald's Global Markets LLC, "MGM"), following the completion of a settlement reached with Bakshi, the company said in a statement.
As part of the agreement, MGM has acquired 50 percent voting equity shares in CPRL, held by Bakshi and his affiliated entity since inception.
CPRL operates McDOnald's outlets in north and east India.
The company, however, did not disclose financial details of the settlement.
On Monday, the estranged partners McDonald's and Bakshi had told the NCLAT that they are working towards an out-of-court settlement to end their over 5-year-old dispute.
In August 2017, McDonald's had terminated franchise agreement for 169 out of its 430 fast food outlets operated by Bakshi-led CPRL in north and east India, alleging breach of contract terms and payment default by the operator. This had created an uncertainty for over 10,000 staff directly and indirectly employed at these outlets.
Bakshi was at loggerheads with McDonald's since 2013. Later, he had approached the NCLT after McDonald's removed him from the post of Managing Director (MD) of CPRL in 2013. In July, 2017, the tribunal restored him to his position. It was challenged by McDonald's in the NCLAT.
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Updated Date: May 09, 2019 19:16:51 IST