Future Retail defaults on Rs 5,322 crore debt repayment – Times of India

NEW DELHI: Large Bazaar-parent Future Retail (FRL) on Friday mentioned it has missed the due date for compensation of round Rs 5,322 crore to lenders because of the ongoing authorized battle with US e-tailer Amazon amongst different points.
In 2021, Kishore Biyani-led FRL had entered right into a one time restructuring (OTR) scheme for corporations that had been impacted by the pandemic, with a consortium of banks and was below obligation to boost Rs 3,900 crore earlier than March 31, 2022 by means of fairness contribution.
“Additional, contemplating the infusion of capital, there was an obligation on the corporate to pay an combination quantity of Rs 5,322.32 crore to numerous consortium banks and lenders (who’re events to the settlement below OTR Plan) on or earlier than March 31, 2022 (‘due date’),” FRL mentioned in a regulatory submitting on Friday.
Citing breach of contract, Amazon has been attempting to dam a proposed Rs 24,700-crore deal between Future Group and Reliance for Future’s sale of retail and logistics belongings to the latter. Final month, nonetheless, Reliance moved in to take cost of a majority of FRL’s shops citing non-payment of leases.
The event comes shut on the heels of a flurry of senior-level exits from the Future Group, together with FRL CEO Sadashiv Nayak and the corporate’s director Rahul Garg.
Stating that it was in discussions with the lenders on the matter, FRL mentioned, “the corporate shall intimate the additional developments and updates on this connection as and when relevant”.
The Future Group agency had missed an earlier deadline on December 31, 2021 for cost of Rs 3,494.56 crore to the banks.
FRL operates numerous retail codecs throughout India, together with Large Bazaar, Koryo, Foodhall and Easyday and is among the many 19 Future Group corporations anticipated to be part of Reliance Retail as a part of the deal introduced in August 2020.

Leave a Comment