Future Enterprises defaults on repayment of NCD interest payment

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Future Enterprises (FEL), part of the beleaguered Future Group, on Tuesday said it had failed to make interest payment of Rs 2.28 crore due on non-convertible debentures (NCDs).

The company was unable to service its obligations in respect of the principal and interest on NCDs due on May 9, 2022. The interest payment was due for 181 days between November 9, 2021, to May 8, 2022, for a gross principal amount of Rs 50 crore, it said in a regulatory update.

Earlier in March, FEL defaulted on the payment of Rs 9.91 crore interest for a period of 367 days (from March 12, 2021, to March 13, 2022). Later in April, the company defaulted on interest repayment of Rs 15.95 crore on NCDs.

FEL develops, owns and leases retail infrastructure and also handles backend operations of Future Group’s retail business.

In December 2020, FEL had disclosed that it planned to utilise the consideration it would receive from the Rs 24,713-crore deal with Reliance Industries for pre-payment of the NCDs. The Future Group had earlier entered into a deal with RIL to sell its retail, wholesale, logistics and warehousing units, to RIL, which was later called off after the group failed to secure shareholders’ and lenders’ approval.