Kishore Biyani-led Future Retail has missed the last date for payment of ₹3,494.56 crore to banks and others lenders as its assets sale deal was hampered due to its ongoing legal dispute with e-commerce giant Amazon.
Future Retail said due to ongoing litigations with Amazon.com NV Investment Holdings LLC, the company was not able to complete the planned monetisation of the specified business on due date.
“As discussed with the banks or lenders, the company would be co-operating for completing the monetisation of the specified business in next 30 days as per directions of the banks to resolve the current situation,” the company said in a stock exchange filing today.
Also read: Lenders in talks to sell some non-core Future group assets
The company has review period of 30 days (from the above due date) in terms of the RBI circular dated 6th August, 2020, and further in terms of provision of the above agreement to make the payment.
“The company shall intimate the further development and updates in this connection as and when applicable,” it said.
Future Retail had last year entered into a one-time restructuring (OTR) scheme for COVID-19 hit companies with a consortium of banks and lenders and was to discharge “an aggregate amount of ₹3,494.56 crore” on or before December 31, 2021.
Lenders of Future Retail had in April 2021 had approved to restructure the existing financial debt of the company under an RBI announced resolution framework for COVID-19 related stress.
The said restructure had covered FRL’s working capital demand, loans, term loans, cash credit, short term loans, NCDs, purchase bill discounting limits, other working capital loans and unpaid interest, which became overdue.
There were 28 banks, which have lent money to the group’s retailing firm and were part of the exercise.
In August 2020, Future group had announced a ₹24,713 crore deal for the sale of the retail and wholesale business, and the logistics and warehousing business to Reliance Retail Ventures Ltd, a subsidiary of Reliance Industries Ltd.
However, e-commerce major Amazon is contesting the deal through its 49 per cent stake in Future Coupons Pvt Ltd (FCPL), which is a shareholder in Future Retail. The matter is presently in dispute before the Supreme Court and Singapore International Arbitration Centre (SIAC).
*With PTI inputs
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