Future Enterprises Ltd said it “sorry for the delayed disclosure” on its part.
New Delhi:
Debt-ridden Future Enterprises defaulted on a principal amount of Rs 126.13 crore in September, which includes Rs 98.35 crore for NCDs under the one-time restructuring (OTR) scheme and Rs 27.78 crore payment obligation to banks.
Future Enterprises Limited (FEL) along with its consortium of banks and lenders had entered into OTR scheme for COVID-hit companies on October 27, 2020 as per RBI guidelines.
The due date for payment of principal amount of Rs 126.13 crore to various banks and lenders, which were part of the OTR scheme, was September 30, 2022.
“The company was not able to discharge the above obligations to banks and lenders as on the due date,” FEL said in a regulatory filing on Saturday.
FEL has missed the deadline for payment of principal amount of 12 non-convertible debentures (NCDs) totaling Rs 98.35 crore. The coupon rates of these NCDs ranged from 9.25 per cent to 10.50 per cent.
It has defaulted on principal repayment of term loans of Rs 15.76 crore from IDBI Bank, Rs 9.35 crore from Indian Bank and Rs 2.65 crore from Central Bank of India.
FEL also said it “sorry for the delayed disclosure” on its part “due to some interpretation issues” with respect to the current disclosure.
Like other Future Group firms, FEL is also trying to reduce debt through monetization of assets.
According to the company, in the April-June quarter of the current financial year, it had settled a part of its investment in its general insurance joint venture for a total of Rs 1,266.07 crore.
“The said recovery proceeds were directly credited to the Trust and Retention Account of the Company maintained with the Central Bank of India on May 5, 2022,” it said.
The said recovery proceeds have been appropriated by the lending banks in the specified ratio as agreed between all of them.
“However, since the said distribution ratio has not been reported to the company till date, it is not possible for the company to furnish factual information on recovery of principal and interest amount and to furnish balance outstanding as well as interest payable for the period under review. Not possible, FEL said.
Central Bank of India, which is the lead bank of FEL under OTR, has already started the process of conducting forensic audit of the accounts of the company for the period April 2017 to July 2022.
Besides this, FEL is also facing three petitions filed by its operational creditors before the National Company Law Tribunal (NCLT) to initiate insolvency proceedings against the company.
It is engaged in the business of manufacturing, trading, leasing assets and logistics services. It developed, owned and leased retail infrastructure for the Future Group.
FEL also has group investments in subsidiaries and joint ventures, including sectors such as insurance, textile manufacturing, supply-chain and logistics.
It was part of 19 group companies 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 closed by Reliance Industries in April after it failed to get backing from lenders.
(Except for the title, this story has not been edited by NDTV staff and is published from a syndicated feed.)