Future Enterprises Defaults On Rs 9.10 Cr Interest Payment For NCDs

Debt-ridden Future Enterprises Ltd (FEL) on Tuesday said it has defaulted on payment of Rs 9.10 crore interest on non-convertible debentures. The payment was due on April 11.

FEL has defaulted interest for the period between October 11, 2021, to April 10, 2022, a regulatory filing from the Future group firm said.

The gross principal amount on which the default has occurred is Rs 180 crore. "The Company is unable to service its obligations in respect of the interest on Non-Convertible Debentures was due on April 11, 2022," said FEL.

The debentures are secured and have a coupon rate of Rs 10.15 per cent per annum. FEL has defaulted several payments in the last two months.

Earlier this month, FEL had informed about a default of Rs 2,835.65 crore to its consortium of banks. Its due date was March 31, 2022.

In March, it had defaulted twice -- Rs 19.16 crore and Rs 93.99 crore - to banks.

FEL is part of the Rs 24,713 crore deal announced by Future Group in August 2020, under which it is to sell 19 companies operating in retail, wholesale, logistics and warehousing segments to Reliance Retail Ventures Ltd (RRVL).

All 19 companies would be consolidated into one entity -- FEL -- and then transferred to Reliance Retail Ventures Ltd.

Future Group companies will be conducting meetings with their respective shareholders and creditors between April 20 to April 23, 2022, to seek their approval for the Rs 24,713 crore deal.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen 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 offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor