homebusiness NewsFuture Enterprises defaults on Rs 13 crore interest payment on NCDs

Future Enterprises defaults on Rs 13 crore interest payment on NCDs

The debt-ridden Future group has been facing three petitions filed by its operational creditors before the National Company Law Tribunal (NCLT) to initiate insolvency proceedings against the company.

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By PTI Feb 18, 2023 6:48:22 PM IST (Published)

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Future Enterprises defaults on Rs 13 crore interest payment on NCDs
Debt-ridden Future Enterprises Ltd (FEL) has defaulted on the payment of interest of Rs 12.75 crore on two non-convertible debentures (NCDs).

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The due date for payment was February 16, 2023, FEL said in a regulatory filing.
”The company is unable to service its obligations in respect of the interest on Non-Convertible Debentures was due on February 16, 2023,” it said.
The debentures have a coupon rate of 9.60 per cent for both series.
The Gross Principal amount on which the default has occurred is Rs 265 crore, which is Rs 106 crore for Series XVI – A and Rs 159 crore for Series XVI – B fund.
FEL had recently defaulted on payment of interest on several non-convertible debentures.
The debt-ridden Future group has been facing three petitions filed by its operational creditors before the National Company Law Tribunal (NCLT) to initiate insolvency proceedings against the company.
Lenders of FEL have also appointed an auditor for conducting a forensic audit of the firm.
It is engaged in the business of manufacturing, trading, leasing of assets and logistics services. It used to develop, own and lease the retail infrastructure for the Future Group.
FEL also holds the group’s investments in subsidiaries and joint ventures including in sectors like insurance, textile manufacturing, supply chain and logistics.
Another group firm Future Lifestyle Fashions Ltd (FLFL) informed bourses that its Managing Director Vishnuprasad M has tendered his resignation.
Both companies were part of the 19 group companies operating in the retail, wholesale, logistic and warehousing segments, which were supposed to be transferred to Reliance Retail as part of a Rs 24,713-crore deal announced in August 2020.
The deal was called off by Reliance Industries in April after it failed to get lenders’ support.

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