Future Enterprises Ltd announced on Thursday that it had defaulted on a one-time restructuring (OTR) payment of Rs 93.99 crore to Punjab National Bank and Canara Bank. The sum was due on March 23, according to a regulatory filing by Future Enterprises Ltd (FEL).
On the Due Date, the Company was unable to discharge the aforementioned Obligations to the various Banks/Lenders. However, according to the RBI circular dated August 6, 2020, and the provisions of the aforementioned Agreement, FEL has a 30-day review period from the above due date to make the payment of the above amount.
Several Future group companies, including FEL, have reached an arrangement with their lenders in accordance with the RBI circular of August 6, 2020, which announced a resolution framework for COVID 19-related stress. Future Retail, the group’s largest company, had previously defaulted on a payment of Rs 3,494.56 crore to banks under the OTR plan in January.
FEL is part of a Rs 24,713 crore agreement announced by the Future Group in August 2020, in which it will sell 19 retail, wholesale, logistics, and warehousing companies to Reliance Retail. Future Enterprises Limited is the transferee firm to Reliance Retail as part of the agreement.
All 19 companies would be merged into a single entity called FEL, which would later be transferred to Reliance. Between April 20 and April 23, 2022, Future group firms will convene shareholder and creditor meetings to obtain shareholder and creditor approval for the Rs 24,713 crore agreement.
