Future Enterprises defaults on Rs 12.68 crore interest payment for NCDs

Debt-ridden Future Enterprises Ltd (FEL) said it has defaulted on payments of interest of two non-convertible debentures totalling Rs 12.68 crore.

The due date for payment was August 17, 2022, FEL said in a regulatory filing.

“The company is unable to service its obligations in respect of the interest on Non-Convertible Debentures (NCDs) due on August 17, 2022,” it said on Thursday.

The debentures are secured with a coupon rate of 9.60 per cent per annum.

The interest amount was payable for the period between February 16 and August 17, 2022, it said.

The amount of securities issued was Rs 106 crore and Rs 159 crore, totalling Rs 265 crore.

Earlier this week FEL informed exchanges that an operational creditor of the company has filed a plea before the National Company Law Tribunal to initiate insolvency proceedings against the firm.

The Future group firm has missed the interest payment of several NCDs in the last three months.

FEL was part of the 19 Future group companies operating in retail, wholesale, logistics and warehousing segments, which were supposed to be transferred to Reliance Retail as part of a Rs 24,713-crore deal announced in August 2020.

The deal was called off by billionaire Mukesh Ambani-led Reliance Industries Ltd in April.

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