Future Enterprises defaults on loan repayments of Rs 2,911.51 cr

Future Enterprise Ltd (FEL) defaulted on repayment of Rs 2,911.51 crore in loans to its lenders, missing 30 days of review period.

The company was required to pay a total amount of Rs 2,911.51 crore between March 23 and March 31, 2022 to various consortium banks and lenders, according to a regulatory filing.

The Kishore Biyani-led Future Group had a 30-day review period under the One-Time Restructuring Scheme (OTR) for companies affected by COVID with its consortium of banks.

“The company was unable to meet the above obligations to banks/lenders during the 30-day review period as the company was unable to complete monetization investments specified as provided for in the OTR plan (as defined in said agreement), on Maturity Dates,” said an FEL regulatory filing.

The record showed he was in default on March 31.

FEL’s total financial indebtedness of the listed entity, including short-term and long-term debt, is Rs 6,778.29 crore, the filing adds.

Earlier on April 1, FEL notified exchanges of the default, but said it had a 30-day grace period.

“The Company has a review period of 30 days (from the due date above) pursuant to the RBI Circular dated August 6, 2020 and further in terms of the provision of the Agreement herein. above to effect payment of the above amount due to bankers/lenders,” FEL had said, adding that it “should indicate further developments and updates in this regard, if any.”

On Friday, FEL had advised that 99.97% of its secured creditors had voted against the proposed sale of Future Group’s retail, wholesale, logistics and warehousing assets to the retail arm of Reliance Industries. .

Following that, Reliance Industries said on Saturday that the transaction could not proceed because secured creditors voted against it.

In line with the pattern between Future Group and Reliance Retail, 19 companies from the former were proposed to be merged into a single entity – Future Enterprises Ltd (FEL) – and then transferred to Reliance Retail Ventures Ltd (RRVL).

RRVL is the holding company for all retail companies in the RIL Group.

Another company of the Future group, Future Retail Ltd (FRL), had also informed on April 1 of the due date for repayment of Rs 5,322.32 crore to lenders due to ongoing disputes with major e-commerce Amazon. and other related issues.

Last week, public sector lender Bank of India moved the Mumbai bench of the NCLT to seek insolvency proceedings against FRL and declare a moratorium on the assets.

(Only the title and image of this report may have been edited by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear reader,

Business Standard has always endeavored to provide up-to-date information and commentary on developments that matter to you and that have wider political and economic implications for the country and the world. Your constant encouragement and feedback on how to improve our offering has only strengthened our resolve and commitment to these ideals. Even in these challenging times stemming from Covid-19, we remain committed to keeping you informed and updated with credible news, authoritative opinions and incisive commentary on relevant topical issues.
However, we have a request.

As we battle the economic impact of the pandemic, we need your support even more so that we can continue to bring you more great content. Our subscription model has received an encouraging response from many of you who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of bringing you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practice the journalism we are committed to.

Support quality journalism and subscribe to Business Standard.

digital editor

Comments are closed.