This will be the second default by a Future Group entity in a month, after Future Consumer failed to repay bondholders in February this year.
Future Enterprises (FEL) on Wednesday said it had failed to make interest repayment of Rs 15.95 crore towards its non-convertible debentures (NCDs).
This will be the second default by a Future Group entity in a month, after Future Consumer failed to repay bondholders in February this year. The default by the Future Group entity came at a time when it is embroiled in a legal battle with Amazon over sale of assets to Reliance Industries (RIL). “The company is unable to service its obligations in respect of the interest on non-convertible debentures due on March 30, 2021,” FEL said on Wednesday.
Earlier this month, the Delhi High Court stayed a single judge’s order restraining Future Retail (FRL) from going ahead with its Rs 24,713-crore deal with RIL. Amazon had challenged Future Group’s asset sale to Reliance Industries on the grounds that it violated a contract that Kishore Biyani entered with Amazon for an investment in a group company.
In December 2020, FEL had disclosed that it planned to utilise the consideration received from the Rs 24,713-crore RIL deal for pre-payment of the NCDs. The Future Group had earlier entered into deal with RIL to sell its retail, wholesale, logistics and warehousing units. According to the deal, Reliance Retail Ventures would acquire the popular Future brand stores such as Big Bazaar, FBB, Foodhall, Easyday, Nilgiris, Central and Brand Factory. The scheme of arrangement for the Future-Reliance deal has already received approval from the Competition Commission of India (CCI) and market regulator Securities and Exchange Board of India (Sebi).
Future Enterprises had reported a consolidated net loss of Rs 294.95 crore during the December quarter (Q3FY21). The company had logged a net profit of Rs 12.06 crore in the year-ago period (Q3FY20). Revenue from operations was down 69% to Rs 459.23 crore during the December quarter.