Future Enterprises (FEL), a part of the beleaguered Future Group, on Saturday said it failed to make an interest payment of Rs 8.94 lakh due on non-convertible debentures (NCDs).
The company was unable to service its obligations in respect of the principal and interest on NCDs due on May 13, 2022. The interest payment was due for 178 days between November 16, 2021, and May 12, 2022, for a principal amount of Rs 2 crore, it said in a regulatory update.
Earlier on May 10, FEL said it had failed to make interest payment of Rs 2.28 crore due on NCDs. The interest payment was due for a gross principal amount of Rs 50 crore. Prior to this in March, FEL defaulted on the payment of Rs 9.91 crore interest and previously in April it had defaulted on interest repayment of Rs 15.95 crore on NCDs.
FEL develops, owns and leases retail infrastructure and also handles back-end operations of Future Group’s retail business.
In December 2020, FEL had disclosed that it planned to utilise the consideration it would receive from the Rs 24,713-crore deal with Reliance Industries for pre-payment of the NCDs. The Future Group had entered into a deal with RIL to sell its retail, wholesale, logistics and warehousing units, to RIL, which was later cancelled after the group failed to secure shareholders’ and lenders’ approval.