Future Retail averts default, pays Rs 100 cr of interest on foreign bonds

By Administrator_India

Capital Sands

Future Retail, which is in talks with Reliance Industries  on sale, on Monday averted a default by paying Rs 100 crore of interest on its foreign bonds.

Any legal complication due to default at this stage would have delayed the deal with RIL, a source said.

The interest was paid on the last day of the 30-day grace period granted by the bondholders of the $500-million senior secured notes. For this, the company drew on its internal accruals and borrowed from banks. A Future executive confirmed the bondholders were paid their dues.

Future Retail shares on Monday closed 6.62 per cent down at Rs 114. This is because one of its lenders sold the firm’s pledged shares because of default.

The group was planning to sell its stake in two insurance arms but was unable to do so within the deadline.

defaulting, the lenders, who have the entire promoter stake pledged with them, began negotiating the sale of Future’s retail businesses to RIL.

According to the plan, which is in the works, three Future group companies — Future Lifestyle, Future Supply Chain Solutions, and Future Retail — will be merged into Future Enterprises. Once it is over, RIL may invest Rs 8,500 crore in the merged entity, taking a 50 per cent stake in the merged outfit.

A source on Monday said Future vendors had been asked by RIL to take a haircut of 20 per cent on their pending dues. Lenders to Future Group are also being asked to take a haircut of up to 40 per cent.

Banks, however, are likely get Future Group’s real estate, which will be hived off into a company.

Related Posts
Even as reduced demand threatens to limit increases, oil prices continue to rise
oil prices rise

Early Friday trade saw oil prices rise, but they were poised for their first weekly losses in three weeks as Read more

power minister criticizes states for the escalating electrical situation
the electricity minister

RK Singh, the electricity minister, claimed on April 28 that there is a power shortage in several states because payments Read more

FM Nirmala Sitharaman: India plans to bring digital currency by next year
FM Nirmala Sitharaman

India plans to launch digital money by 2023, according to Finance Minister Nirmala Sitharaman. "The government and RBI are looking Read more

DGCA bars 90 SpiceJet pilots from flying 737 Max planes after finding them improperly trained
SpiceJet pilots

Indian aviation regulator DGCA has barred 90 SpiceJet pilots from operating the Boeing 737 Max aircraft after finding them not properly trained. Read more

0 0 votes
Article Rating
Notify of
Inline Feedbacks
View all comments
Would love your thoughts, please comment.x