future retail: Future Retail defaults on ₹5,300,000 debt repayment

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NEW DELHI: Big Bazaar’s parent company, Future Retail (FRL), said on Friday it had missed the due date for the repayment of around Rs 5,322 crore to lenders due to the ongoing legal battle with US online retailer Amazon, among other issues. In 2021, Kishore Biyaniled FRL had entered into a one-time restructuring program (OTR) for companies affected by the Covid pandemic, with a consortium of banks and was under an obligation to raise Rs 3,900 crore by March 31, 2022 through equity contribution.
“Furthermore, considering the capital injection, the company was required to pay a total amount of Rs 5,322 crore to various consortia of banks and lenders (who are parties to the deal under the OTR ) no later than March 31, 2022,” FRL said. Citing breach of contract, Amazon attempted to block a proposed deal worth Rs 24,700 crore between Future Group and Reliance for Future’s sale of retail and logistics assets to the latter. Last month, however, Reliance moved in to take over the majority of FRL’s stores, citing non-payment of rent.
The development closely follows a wave of high profile departures from the Future Group, including FRL CEO Sadashiv Nayak and company director Rahul Garg. Stating that it was in discussions with the lenders on this matter, FRL said that “the company will advise further developments and updates in this regard as appropriate.”
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