This story is from August 25, 2020

Future Retail pays Rs 100 crore bond interest, avoids default

The Kishore Biyani-led Future Retail, which is in the final stages of discussions for a majority stake sale to Mukesh Ambani-led Reliance Industries (RIL), on Monday averted default by making an interest payment of $14 million, or Rs 100 crore, on its foreign bonds.
Future Retail pays Rs 100 crore bond interest, avoids default
Kishore Biyani (File photo)
NEW DELHI: The Kishore Biyani-led Future Retail, which is in the final stages of discussions for a majority stake sale to Mukesh Ambani-led Reliance Industries (RIL), on Monday averted default by making an interest payment of $14 million, or Rs 100 crore, on its foreign bonds.
A default would have led to downgrading of the Future Group’s flagship company by rating agencies to default category. The Future Group has a debt burden of Rs 12,989 crore, with all promoter shares being pledged with lenders.
A Future Group spokesperson confirmed the development.
Future Retail, which operates retail chains including Big Bazaar and Easyday, after defaulting on July 22, said the lockdown resulting in restricted business operations had affected its liquidity position, causing it to miss the payment of interest due on the USD Notes listed on the Singapore Stock Exchange. The 30-day grace period for repaying the interest was to end on Monday.
Hinting that the group may announce the sale soon, Future Enterprises rescheduled its board meeting that was to be held on August 22 to August 28. Several entities of the group, including Future Retail, Future Consumer and Future Lifestyle Fashions, are set to be sold to Reliance to pay off its mounting dues. If the deal goes through, it will signal the exit of Biyani from retail, while catapulting Reliance Retail to the top spot in the brick-and-mortar retail space in India.
End of Article
FOLLOW US ON SOCIAL MEDIA