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Sunday, May 16, 2021

Future Retail debt recast plan gets banks’ approval

The deal will now be vetted by the committee headed by KV Kamath.

By: ENS Economic Bureau | Mumbai |
Updated: April 19, 2021 3:25:41 am
An employee packs goods into a plastic bag at a checkout counter of a Big Bazaar hypermarket, operated by Future Retail Ltd., in Mumbai. (File)

Banks have approved the debt restructuring plan of Future Retail with the repayment of loans extended for up to two years.

“Repayment of short-term loans, term loans, NCDs, overdue working capital loans (converted into working capital term loans) is to be extended up to a maximum of 2 years,” the company said. There will be interest moratorium between March 1, 2020 to September 30, 2021 and interest during the period will be converted into funded interest term loan which will payable by December 2021, it said.

Explained

Over to Kamath panel

The deal will be vetted by the KV Kamath committee. In October 2020, Care Ratings put Rs 6,278 crore bank facilities of Future Retail under credit watch with negative implications.

The deal will now be vetted by the committee headed by KV Kamath. As part of the recast plan, cash credit will be continued at reduced level based on bank assessment and all securities created on assets of the company will continue to operate in favour of the lenders in the ranks assigned originally.

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