future retail: Future Retail defaults on ₹5.3k crore debt repayment – Times of India

NEW DELHI: Large Bazaar mother or father Future Retail (FRL) on Friday stated it has missed the due date for reimbursement 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 Biyaniled FRL had entered right into a one-time restructuring (OTR) scheme for corporations that have been impacted by the Covid pandemic, with a consortium of banks and was below an obligation to boost Rs 3,900 crore earlier than March 31, 2022 by the use 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 crore to varied consortium of banks and lenders (who’re events to the settlement below OTR plan) on or earlier than March 31, 2022,” FRL stated. Citing breach of contract, Amazon has been attempting to dam a proposed deal value Rs 24,700-crore between Future Group and Reliance for Future’s sale of retail and logistics property to the latter. Final month, nevertheless, 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 stated, “the corporate shall intimate the additional developments and updates on this connection as and when relevant”.

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