Debt-ridden Future Enterprises Ltd (FEL) has defaulted on interest payment of Rs 4.10 crore for its non-convertible debentures.
The due date for payment was June 24, 2022, 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 June 24, 2022,” it said.
This is the fourth default in June by the Kishore Biyani-led Future group firm.
Earlier this week, FEL defaulted twice on interest payments of Rs 85.71 lakh and Rs 6.07 crore for its non-convertible debentures. FEL had made another default on the payment of interest of Rs 1.41 crore, earlier this month.
It said that FEL has defaulted on interest payments between June 24, 2021, and June 23, 2022.
The debentures are secured and have a coupon rate of 10.25% per annum.
In April, FEL had informed the exchanges about a default of ₹2,835.65 crores towards its consortium of banks. Its due date was March 31, 2022.
FEL was a part of the 19 group companies operating in retail, wholesale, logistics, and warehousing segments, which were supposed to be transferred to Reliance Retail as part of a ₹24,713-crore deal announced in August 2020.
In April, the billionaire Mukesh Ambani-led Reliance Industries Ltd.’s deal was called off.
Asks NCLT for a new RP
Future Retail (FRL), against which Bank of India has filed insolvency proceedings, on Tuesday told the National Company Law Tribunal (NCLT) that the proposed resolution professional (RP) should be changed due to a conflict of interest.
The proposed RP – Deloitte – is also an auditor for certain other Future Group companies, hence a new RP should be appointed, FRL counsel Shyam Kapadia said in the course of a hearing to admit the company for insolvency.
In April, FRL’s lenders selected Vijaykumar Iyer, backed by Deloitte India, as the RP for bankruptcy proceedings.
Senior Advocate Zal Andhyarujina, who made submissions on behalf of Amazon, said that the lenders should be directed to ask FRL to bring back the retail assets it has already sold.
The tribunal’s Mumbai bench will continue to hear the petition filed by Amazon opposing the Bank of India’s (BoI’s) insolvency petition against Future Retail on Wednesday.
Separately, Future Enterprises (FEL), another Future Group company, on Tuesday said it has defaulted on an interest payment of Rs 6.07 crore due on non-convertible debentures (NCDs).