Future Enterprises defaults on Rs 6.15 cr interest payment for NCDs

Debt-ridden Future Enterprises Ltd (FEL) has announced another default, this time on payment of interest of Rs 6.15 crore for its non-convertible debentures.

The due date for payment was June 29, 2022, FEL said in a regulatory filing on Thursday.

"The Company is unable to service its obligations in respect of the interest on Non-Convertible Debentures...," it said.

This is the fifth default in June by the Kishore Biyani-led Future Group firm.

Last week, FEL had informed the exchanges about three defaults of Rs 4.10 crore, Rs 85.71 lakh and Rs 6.07 crore. All the amounts were interest payments for its non-convertible debentures.

FEL had defaulted on another interest payment of Rs 1.41 crore earlier this month.

The latest default is on the interest of securities issued for a sum of Rs 60 crore.

FEL has defaulted on interest payment for the period between June 29, 2021 to June 28, 2022, it said.

The debentures are secured and have a coupon rate of 10.25 per cent per annum.

In April, FEL had informed the exchanges about a default of Rs 2,835.65 crore towards its consortium of banks. Its due date was March 31, 2022.

FEL was part of the 19 group companies operating in retail, wholesale, logistics and warehousing segments which were supposed to be transferred to Reliance Retail as part of a Rs 24,713-crore deal announced in August 2020.

The deal was called off by the billionaire Mukesh Ambani-led Reliance Industries Ltd in April.