Three Future Group firms default on payment to lenders under OTR

FEL have failed to make scheduled repayment on interest of Rs 126.13 crore to various banks and lenders, who were parties to an OTR agreement.

Future Lifestyle Fashions defaulted on borrowings worth Rs 335.08 crore.

Three Future Group companies have defaulted on repayment of interest and principal amount to various lenders under a One Time Restructuring (OTR) agreement and non-convertible debentures (NCDs). Future Enterprises (FEL) have failed to make scheduled repayment on interest of Rs 126.13 crore to various banks and lenders, who were parties to an OTR agreement. Of the total, FEL defaulted on repayment of principal amount of NCDs of Rs 98.35 crore due on June 30, it said in a regulatory update. Further, it defaulted on repayment of term loans totalling Rs 27.78 crore to various banks, which were due on June 30, under the OTR, it added.

The OTRs were rolled out by the central bank for Covid-19 hit companies.FEL has also said the proceeds of the `1,266.07-crore stake sale in Future Generali India Insurance to its joint venture partner Generali Group have been deposited in a trust and retention account, maintained with Central Bank of India on May 5. The realisation has been “appropriated” by the lenders in a specified ratio as agreed among all of them, it added.

Earlier in May, Italian financial services major Generali said it completed the acquisition of a 25% stake in Future Generali India Insurance from FEL, and its stake in the JV has now gone up to 74%.On its part, Future Lifestyle Fashions defaulted on borrowings worth Rs 335.08 crore, and Future Consumer (FCL) said it defaulted on interest of Rs 1.9 crore on principal amount of Rs 15.3 crore. The defaults were for repayment from various banks and financial institutions, with June 30 as due date.

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