Future Enterprises fails to pay Rs 8.94 lakh interest on MNT

Future Enterprises (FEL), part of the beleaguered Future Group, said on Saturday that it had failed to make interest payments of Rs 8.94 lakh due on the non-convertible debentures (NCDs).

The company was unable to meet its obligations with respect to principal and interest on the NTMs due on May 13, 2022. The interest payment was due for 178 days between November 16, 2021 and May 12. 2022, for a principal amount of Rs 2 crore, it said in a regulatory update.

Earlier on May 10, FEL said it had failed to make payment of the Rs 2.28 crore interest owed on the MNTs. The interest payment was due for a gross principal amount of Rs 50 crore. Earlier, in March, FEL defaulted on interest payment of Rs 9.91 crore and earlier, in April, it defaulted on interest repayment of Rs 15.95 crore on NCDs.

FEL develops, owns and leases retail infrastructure and also manages the backend operations of Future Group’s retail business.

In December 2020, FEL revealed that it planned to use the consideration it would receive from the Rs 24,713 crore deal with Reliance Industries for prepayment of NCDs. The Future Group had entered into an agreement with RIL to sell its retail, wholesale, logistics and warehousing units to RIL, which was later canceled after the group failed to obtain shareholder approval and lenders.

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