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Future Retail misses servicing of interest payment on dollar denominated notes

The terms of issuance of the USD Notes provides for an additional period of 30 days for payment of interest from the due date, in case FRL misses the original due date.

Published: 25th January 2022 11:08 AM  |   Last Updated: 25th January 2022 11:08 AM   |  A+A-

Kishor Biyani

Future Group CEO Kishore Biyani

By PTI

NEW DELHI: Future Retail Ltd, which operates chains such as Big Bazaar and Easyday and Heritage among others, on Monday said it has missed payment of interest due on the dollar denominated notes (USD Notes), listed on Singapore Stock Exchange, due to weakening of its liquidity position.

The Kishore Biyani-led Future Group firm said due to the continued impact of the COVID-19, the restricted business operations of the company and the current financial situation, the liquidity position has still remained affected. "This has caused us to miss the service of the payment of interest due on the USD Notes (listed on Singapore Stock Exchange) on January 24, 2022," Future Retail Ltd (FRL) said in a regulatory filing.

The terms of issuance of the USD Notes provides for an additional period of 30 days for payment of interest from the due date, in case FRL misses the original due date, it added. "Accordingly, we are proposing to make payment of the interest within additional period of 30 days from the interest due date on the USD Notes," said FRL.

The Senior Secured Notes notes had an interest on 5.60 per cent and due in 2025. Earlier, this month FRL had missed the "Due Date" for payment of Rs 3,494.56 crore to the banks as it failed to sell its assets due to its ongoing litigation with amazon impacting its monetisation plans.

In August 2020, the Future group had announced Rs 24,713 crore deal for sale of the retail and wholesale business, and the logistics and warehousing business to Reliance Retail Ventures Ltd, a subsidiary of Reliance Industries Ltd.

However, its e-commerce major Amazon is contesting the deal through its 49 per cent stake in Future Coupons Pvt Ltd (FCPL), which is a shareholder in Future Retail. The matter is presently in dispute before the Supreme Court and Singapore International Arbitration Centre (SIAC).

Reliance Retail Ventures had for the second time extended the timeline for completing its Rs 24,713 crore deal with Future group to March 31, 2022 as it still awaits regulatory and judicial clearances.



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