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Thursday, September 24, 2020

Future Retail makes interest payment of $14 million on USD Notes, avoids default

In its letter dated July 22, Future Retail had informed about the grace period of 30 days for making payment of interest on the USD Notes. On Monday, its shares fell 6.62% to Rs 114.25 on the BSE.

By: ENS Economic Bureau | Mumbai | Updated: August 25, 2020 10:32:12 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, India, on Sunday, April 16, 2017. (Photographer: Dhiraj Singh/Bloomberg)

Future Retail, which was in talks with Reliance Industries for a takeover deal, has averted a default on payment of interest on Senior Secured Notes 2025 (USD notes). The Kishore Biyani firm on Monday paid $14 million (around Rs 100 crore) to the holders of the USD Notes within the 30-day grace period.

“Today, we are pleased to inform that the company has made the payment of said interest for the half year ended for an amount of $14 million on USD Notes,” the company said in a stock exchange filing. In its letter dated July 22, the company had informed about the grace period of 30 days for making payment of interest on the USD Notes. On Monday, Future Retail shares fell 6.62 per cent to Rs 114.25 on the BSE.

The debt-laden group is currently working on a sale deal. Three Future group firms — Future Lifestyle, Future Supply Chain Solutions and Future Retail — were proposed to be merged into Future Enterprises Ltd.

Rating agency Icra had estimated the total debt of Future Group’s listed companies at Rs 12,778 crore as of September last year. The company has since faced widespread closures amid the coronavirus-induced lockdown.

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