Future Retail (FRL) has defaulted on a loan repayment of INR 53.2bn ($697mn) to a consortium of banks which had given the retailer a deadline of March 31, 2022. Future Group is currently in the middle of a legal battle between Amazon and Reliance over its takeover. FRL said in a statement that it is in discussion with lenders and further updates will be provided as and when available. In 2021, it entered into a one-time restructuring scheme for Covid impacted businesses with a consortium of banks and was under obligation to raise INR 39bn ($514mn) by equity funds. However, it failed to raise equity by March 31 due to legal battles. Recently, FRL’s CEO Sadashiv Nayak and director Rahul Garg resigned from the company. Another Future Group company Future Enterprises Ltd (FEL) has defaulted on loan repayment of INR 28.35bn ($370mn) to a consortium of banks.
Separately, regarding the Amazon-Future Retail dispute of the asset sale to Reliance, the Amazon’s lawyer said in court, “The assets must continue to remain with FRL and operate with them. That is our prayer until the matter is resolved by the Singapore arbitral tribunal.”
FRL’s dollar bonds were higher – its 5.6% 2025 were up 0.21 points to 58.02 and yielding 28.31%.
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