Future Enterprises Ltd (FEL) on Tuesday said it has defaulted on payment of Rs 29.33 crore as interest on non-convertible debentures, the third default by the Kishore Biyani-led group this month. The due date for payment was April 18, 2022, it said in a regulatory filing.
On April 12, FEL had informed the exchanges about default on payment of Rs 9.10 crore interest on NCDs and Rs 1.22 crore on April 15. The latest default is on the interest of securities issued for a sum of Rs 300 crore. FEL has defaulted on interest for the period between April 17, 2021 to April 17, 2022, it said.
The debentures are secured and have a coupon rate of 9.75 per cent per annum.Earlier this month, FEL had announced a default of Rs 2,835.65 crore towards its consortium of banks. The due date was March 31, 2022.
FEL has defaulted on several payments in the last two months. In March, it had defaulted twice — for Rs 19.16 crore and Rs 93.99 crore owed 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 of their respective shareholders and creditors between April 20 to April 23, 2022, to seek their approval for the Rs 24,713 crore deal.
(with PTI inputs)