Future Consumer Ltd defaults on Rs 52-crore debenture repayments

Future Consumer Ltd (FCL) has defaulted on the payment of Rs 51.85 crore towards principal and interest due on non-convertible debentures, a regulatory filing said on Tuesday.

The default which happened on August 15, 2022, includes an interest amount of Rs 10.73 crore and a principal Amount of Rs 41.12 crore, FCL said a regulatory filing.

"The Company has been unable to service its obligations towards payment of the amount of principal and interest due on unlisted Non-Convertible Debentures issued by the Company to CDC Emerging Markets Ltd," said FCL.

The default is on the amount issued for a sum of Rs 200 crore. This was allocated on February 15, 2018, with a coupon rate of 11.07 per cent per annum.

As of June 30, 2022, the total financial indebtedness of FCL including short-term and long-term was Rs 446.82 crore.

FCL is in the business of manufacturing, branding and distributing FMCG food and processed food products.

It was part of the 19 group companies operating in retail, wholesale, logistics and warehousing segments, which were supposed to be transferred to Reliance Retail under 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.