Kishore Biyani’s Future Retail averts loan default, pays interest hours ahead of deadline

By: |
August 24, 2020 5:50 PM

Future Retail in an exchange filing informed that it has made the payment of interest on 5.6 per cent senior secured USD notes due 2025.

Kishore Biyani, Future retail, loan defaultThe company informed to make the payment of said interest for the half-year ended for an amount of USD 14 million on above USD Notes

Kishore Biyani-led Future Retail made $14 million interest payment hours ahead of its 30-day grace period deadline. The company in an exchange filing informed that it has made the payment of interest on 5.6 per cent senior secured USD notes due 2025. Future Retail had missed its previous deadline of July 22, 2020, to make the interest payment. “In furtherance to our letter dated 22nd July, 2020, wherein we had informed about the grace period of 30 days for making payment of interest on above USD Notes. Today, we are pleased to inform that the company has made the payment of said interest for the half-year ended for an amount of USD 14 million on above USD Notes,” Future Retail informed in a BSE filing.

Future Retail shares fell 6.62 per cent to close at Rs 114.25 apiece on BSE, in a firm market. During the trade, the stock quoted day’s high of Rs 120 and a low of Rs 111.60 apiece. Future Retail stock price hit a 52-week low of Rs 61.05 per share in April this year, since then, the stock has risen over 87 per cent.

Last month, the company informed that it is proposing to make payment of the interest within 30 days from the interest due date on the USD Notes. It further added that the company is in the process of ensuring that payment of such interest is made within this additional time period. “Due to the nation-wide lock down imposed to restrict the spread of COVID-19 pandemic, and consequent restricted business operations of the company the liquidity position has been affected causing us to miss the service of the payment of interest due on the USD Notes (listed on Singapore Stock Exchange) on 22nd July 2020,” it said in a notice dated July 22.

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