Future Retail, led by Kishore Biyani, missed the payment deadline for ??3,494.56 crore to banks and other lenders as its asset sale deal was hampered due to its ongoing legal dispute with e-commerce giant Amazon.
Future Retail said that due to pending litigation with Amazon.com NV Investment Holdings LLC, the company was unable to complete the planned monetization of the specified business by the due date.
“As discussed with the banks or lenders, the company would cooperate to complete the monetization of the specified activity within the next 30 days in accordance with the banks’ instructions to resolve the current situation,” the company said in a stock market filing today. . .
Read also : Lenders in talks to sell some non-core assets of Future Group
The company has a 30 day review period (from the above due date) under the terms of the RBI Circular of August 6, 2020, and further in terms of the provision of the above agreement. above to make payment.
âThe company will advise on further development and updates in this regard as appropriate,â he said.
Future Retail concluded a one-time restructuring program (OTR) for businesses affected by COVID-19 with a consortium of banks and lenders last year and was to pay “a total amount of ??3,494.56 crore “by December 31, 2021.
In April 2021, Future Retail’s lenders approved the restructuring of the company’s existing financial debt as part of a resolution framework announced by the RBI for stress related to COVID-19.
Said restructuring had covered FRL’s demand for working capital, loans, term loans, cash loans, short-term loans, NTMs, voucher discount limits, other loans. working capital and unpaid interest, which have become past due.
There were 28 banks, which loaned money to the group’s retail company and were part of the exercise.
In August 2020, Future group announced a ??24,713 crore for the sale of the retail and wholesale business, as well as the logistics and warehousing business to Reliance Retail Ventures Ltd, a subsidiary of Reliance Industries Ltd.
However, e-commerce giant Amazon is challenging the deal through its 49% stake in Future Coupons Pvt Ltd (FCPL), which is a shareholder of Future Retail. The case is currently before the Supreme Court and the Singapore International Arbitration Center (SIAC).
* With PTI inputs
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