India’s Future Retail was downgraded to D from SD by S&P as the company has missed another coupon payment on its notes due on 22 July. The rating agency added that the company is unlikely to make the payment during the 30-day grace period because insolvency proceedings have been initiated and the company requires all outstanding payments to be submitted as claims. Future expects to complete the insolvency resolution process by January 2023. In April, Bank of India (BOI) had dragged Future Retail to bankruptcy court to recover a INR 35bn ($460mn) default on the one-time restructuring scheme between the bank and the retailer. Future has missed every coupon on the payment date on its dollar bonds since issuance in January 2020, but has managed to pay the coupons at the eleventh hour within the grace period. It was previously downgraded by S&P to CC in April, when the rating agency cited “virtual certainty” of default after the deal with Reliance fell through.

Future Retail’s 5.6% 2025s were flat at distressed levels of 11 cents on the dollar.

For the full story, click here

Show Buttons
Hide Buttons