Future defaults. Future Enterprises defaults on ₹19.16 crore payment to various banks

BL Mumbai Bureau Updated - March 30, 2022 at 05:42 PM.

Last week, it had defaulted on payment of ₹93.99 crore to Punjab National Bank and Canara Bank under the one-time restructuring plan

Kishore Biyani | Photo Credit: KAMAL NARANG

Future Enterprises Limited (FEL) has again defaulted on payment of ₹19.16 crore to Punjab National Bank, Union Bank of India and Canara Bank under the one-time restructuring (OTR) plan.

The due date for payment of the amount was March 28, a regulatory filing by FEL said. 

“The company was not able to discharge the aforesaid obligations to respective banks/lenders, on due date,” it said.

FEL also said that it had a review period of 30 days from the above due date in terms of the RBI circular dated August 6, 2020, and further in terms of provision of the agreement to make the payment of above amount.

“The company shall intimate the further development and updates in this connection as and when applicable,” FEL added.

This is the second time the company has defaulted. Last week, it had defaulted on payment of ₹93.99 crore to Punjab National Bank and Canara Bank under the one-time restructuring (OTR) plan.

Multiple companies of the Kishore Biyani-headed Future Group had availed the one time restructuring resolution from their respective lenders under the RBI circular dated August 6, 2020 in which a resolution framework for Covid-19-related Stress was announced.

Future Group’s companies have been facing an acute cash crunch due the covid-19 pandemic. 

Meanwhile, the company also informed that its credit rating by Care Ratings had been reaffirmed to (Care D) on its Non-Convertible Debentures, the company said. 

Published on March 30, 2022 09:28

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