Three listed entities of debt-ridden Future Group – Future Enterprises, Future Consumer and Future Lifestyle Fashions – on Friday reported default on their payment obligations to their consortium of lenders under the One Time Resolution (OTR) scheme.
Future Lifestyle Fashion Ltd (FLFL) in a regulatory filing reported a default of Rs 335.08 crore on the principal amount.
The due date was June 30, 2022.
The principal amount includes – Rs 3.27 crore term loan, Rs 72.25 crore for a working capital term loan, Rs 51.46 crore for funded interest term loan and Rs 208.10 crore for discounted purchase bills.
However, FLFL, Head of Fashion Business, Future Group, said, “The interest due and payable on the above facilities has been paid till June 30, 2022.”
FLFL has an in-house retail chain Central and Brand Factory, Exclusive Brand Outlet (EBO) and Multi-Brand Outlet (MBO) of nearly a dozen apparel labels in its portfolio.
Future Enterprises Limited (FEL) has informed the exchanges about a default of Rs 126.13 crore on “repayment of principal amount of NCDs under OTR”. The due date was June 30, 2022.
This includes the principal amount of Rs 98.35 crore and Rs 27.78 crore for repayment of term loan.
FEL was to “pay a total of Rs 126.13 crore (obligation) (defined in the OTR scheme) to various banks and lenders (who are parties to the agreement under the OTR scheme) on June 30, 2022 (due date)”. FEL said.
Several Future Group firms had entered into OTR schemes with their consortium of banks as per the terms of a circular issued by RBI on August 6, 2020.
Similarly, Future Consumer Limited (FCL) reported a default of Rs 17.2 crore, which includes principal amount of Rs 15.3 crore and interest of Rs 1.9 crore.
FCL, which is in the business of manufacturing, branding and distributing FMCG food and processed food products, said the company’s outstanding borrowings from banks and financial institutions amounted to Rs 447.8 crore.
FEL had recently settled the investment portion of its general insurance joint venture totaling Rs 1,266.07 crore.
“… the proceeds have been directly credited to the Trust and Retention Account of the Company, maintained with the Central Bank of India as on May 05, 2022,” FEL said.
The income is appropriated by the lending banks in a specified proportion as agreed between them all.
“However, since the said distribution ratio has not been communicated to the company, it is not possible for the company to provide the actual details of the principal amount recovered and the interest amount appropriated and the outstanding balance,” FEL said.
The three companies were part of 19 group firms operating in the retail, wholesale, logistics and warehousing segments that were to be transferred to Reliance Retail as part of the Rs 24,713 crore deal announced in August 2020.
The deal was canceled in April by billionaire Mukesh Ambani-led Reliance Industries Ltd.