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Debt-ridden Future Retail Ltd (FRL) on Friday said it has missed the due date for repayment of Rs 5,322.32 crore to lenders on account of the ongoing litigations with e-commerce major Amazon and other related issues.
Last year, FRL had entered into a One Time Restructuring (OTR) scheme for COVID-hit companies with a consortium of banks and was under obligation to raise Rs 3,900 crore before March 31, 2022 by way of equity contribution.
“Further, considering the infusion of capital, there was an obligation on the company to pay an aggregate amount of Rs 5,322.32 crore to various consortium banks and lenders (who are parties to the agreement under OTR Plan) on or before 31st March, 2022 (‘due date’),” it said.
However, the company said that “due to ongoing litigations with Amazon.com NV Investment Holdings LLC and other connected issues”, it was not able to raise funds by way of equity contribution.
Also, the payment of obligations on due date, including monthly interest overdue for February and March 2022, remain unpaid as on date, the company said in a regulatory filing.
Noting that it was in discussions with the lenders on the matter, FRL said, “the company shall intimate the further developments and updates in this connection as and when applicable”.
The Future Group firm had missed an earlier deadline on December 31, 2021 for payment of Rs 3,494.56 crore to the banks.
On Thursday, FRL’s CEO Sadashiv Nayak resigned from the post seven months after his appointment. Earlier this month, the company’s director Rahul Garg also put in his papers.
FRL, which operates various formats such as Big Bazaar, Koryo, Foodhall and Easyday, is among the 19 Future Group companies, which would be transferred to Reliance Retail as part of Rs 24,713 crore deal announced in August 2020.
The deal is contested by e-commerce major Amazon and is under litigation at various forums including Supreme Court, Delhi High Court and Singapore International Arbitration Center.
This has also forced Reliance Retail Ventures Ltd (RRVL), the retail arm of Reliance Industries, to go for extension of the long-stop date for the scheme for completing the deal with the Future Group.
In February, RRVL took over the operations of at least 300 stores of FRL and has offered jobs to its employees after the Kishore Biyani-led group failed to make lease payments to landlords.
Last month, FRL said it is “committed” to the reversal of the takeover of its stores by RRVL and take all such action as may be necessary to seek value adjustments.
As per the proposed deal with RRVL, all 19 Future Group companies operating in retail, wholesale and logistics arms, would be consolidated into one entity — Future Enterprises Ltd (FEL) — and then transferred to Reliance.
In April, Future Group companies will be conducting meetings of their respective shareholders and creditors between April 20 to April 23, 2022, to seek their approval for the Rs 24,713 crore deal.
(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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