Future Enterprises Defaults On Rs 1.22 Crore Interest Payment; Second Time In A Week

Debt-ridden Future Enterprises Ltd (FEL) has defaulted on the payment of interest of Rs 1.22 crore due on non-convertible debentures, according to a regulatory filing. 
        
The due date for payment of Rs 1.22 crore interest was April 13, 2022, FEL said in the regulatory filing.
        
"The company is unable to service its obligations in respect of the interest on Non-Convertible Debentures was due on April 13, 2022," it said.
       
This is the second default by the Kishore Biyani-led Future group firm this week. On April 12, FEL had informed about the default on the payment of Rs 9.10 crore interest due on NCDs.
        
The latest default is on the interest of securities issued for a sum of Rs 25 crore.
        
FEL has defaulted on interest payment for the period between October 13, 2021, to April 12, 2022, according to the regulatory filing from the Future group firm. 
       
The debentures are secured and have a coupon rate of Rs 9.80 per cent per annum.
      
Earlier this month, FEL had informed about the default of Rs 2,835.65 crore to a consortium of banks. Its due date was March 31, 2022.
        
FEL has defaulted on several payments in the last two months. In March, it defaulted on payments of Rs 19.16 crore and Rs 93.99 crore 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 with their respective shareholders and creditors between April 20 to April 23, 2022, to seek their approval for the Rs 24,713 crore deal.