Future Retail misses payment of about Rs 3,500 crore to lenders under resolution plan

Future Retail on Saturday said that it had failed to meet its obligation of paying Rs 3,494.56 crore on or before December 31 to consortium banks and lenders under its one time resolution plan (OTR plan).

"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," Future Retail, which runs Big Bazaar, Easyday, fbb, among others, said in an exchange filing.

As discussed with the banks/ lenders, the company would co-operate for completing the monetisation of the specified business within the next 30 days as per the directions of the banks to resolve the current situation, it added.

In April this year, the company had signed the OTR plan to restructure its existing debt in line with the resolution framework sanctioned by the Reserve Bank of India (RBI) to alleviate COVID-19-related stress.

Future Retail was obligated "to pay an aggregate amount of Rs 3494.56 cr ("obligations") (as defined in the OTR Plan) to various consortium banks and lenders (who are parties to the agreement under OTR Plan) on or before 31st December, 2021 ("Due Date")".

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"We would like to further inform that the company has review period of 30 days (from the above due date) in terms of the RBI circular dated 06th August, 2020 and further in terms of provision of the above agreement to make the payment of above amount due to identified bankers/ lenders," the filing said.

Future Retail is involved in a legal battle with Amazon, which has delayed the acquisition of the former's assets by Reliance Industries Ltd.

In a separate filing, Future Retail said that CARE Ratings has downgraded the ratings for its retail instruments.

"The said changes factors delay in servicing of principal repayment due on loans on 31st December, 2021," it said.

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