Debt-ridden Future Enterprises Ltd (FEL) on Wednesday said it has defaulted on payment of interest on non-convertible debentures totalling Rs 15.73 crore. The due date for payment was September 20, 2022, said a regulatory filing from FEL.
"The Company is unable to service its obligations in respect of the interest on Non-Convertible Debentures...," it said.
The debentures are secured and have a coupon rate of 9.60 per cent per annum. FEL has defaulted on interest payment for the period March 21, 2022, to September 19, 2022. The total amount of securities issued was Rs 352 crore and the gross principal amount on which the default has occurred is Rs 327 crore.
The debt-ridden Future group is facing two petitions filed by its 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. FEL had recently defaulted on payment of interest on several non-convertible debentures.
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. It was 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.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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First Published: Wed, September 21 2022. 21:54 IST