PTIFuture Enterprises Ltd. announced on Thursday that it had defaulted on payments of £93.99 million to Punjab National Bank and Canara Bank as part of the one-off restructuring plan (OTR).
The due date for paying the amount was March 23, according to a regulatory filing from Future Enterprises Ltd (FEL).
“The company was unable to meet the above obligations to the respective banks/lenders in a timely manner,” it said.
However, FEL said that it has a review period of 30 days from the above due date pursuant to the RBI circular dated August 6, 2020 and further in relation to the provision of the above agreement to make the payment of the above amount.
“The company will communicate further development and updates in this regard as appropriate,” added FEL.
Several Future group companies, including FEL, have entered into arrangements with their respective lenders pursuant to the RBI circular dated August 6, 2020 announcing a resolution framework for COVID-19 related stress.
The group’s lead company, Future Retail, has already defaulted on payments of ₹3,494.56 billion to banks under the OTR plan in January.
FEL is part of the £24,713 billion deal announced by Future Group in August 2020, in which it announced it would sell 19 companies active in retail, wholesale, logistics and warehousing to Reliance Retail.
As part of the transaction, Future Enterprises Limited is the transferring company of Reliance Retail.
All 19 companies would be consolidated into one entity – FEL – and then transferred to Reliance.
Future group companies are holding meetings of their respective shareholders and creditors between April 20 and 23, 2022 to get their approval for the £24,713 billion deal.
