Care Ratings has downgraded Future Retail’s non-convertible debentures, long-term, and short-term bank facilities to (default) ‘D’ grade. The Kishore Biyani-led company missed the last date for payment of ₹3,494.56 crore to banks and other lenders that were a part of the One Time Resolution Plan.
“The said changes factors delay in servicing of principal repayment due on loans on 31st December 2021,” the rating agency said.
In a separate filing the company said, “Due to ongoing litigations with Amazon.com NV Investment Holdings LLC, the Company was not able to complete the planned monetisation of the Specified Business as contemplated in OTR Plan to discharge the aforesaid Obligations to Banks / Lenders, on Due Date. As discussed with the Banks / Lenders, the Company would be co-operating for completing the monetisation of the Specified Business within next 30 days as per directions of the banks to resolve the current situation.”
Last year, post-Covid, Future Retail’s stocks tanked following which the company pledges more shares with its lenders.
In August 2020, Future Retail sold its assets to Reliance for ₹ 24,713 crore subject to approvals. This deal was challenged by Amazon, which had invested ₹1,400 crore in Future Coupon Private Limited in 2019. Amazon claimed it invested in FCPL on a condition that Future Retail could not sell its assets to restricted parties, including Reliance.