Three listed entities of debt-ridden Future Group — Future Enterprises, Future Consumer and Future Lifestyle Fashions — on Friday reported defaulting on their payment obligation towards their consortium of lenders under a One Time Resolution (OTR) plan.
Future Lifestyle Fashions 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 loans and Rs 208.10 crore for purchase bills discounting.
However “interest due and payable on the above facilities has been paid up to 30 June 2022”, said FLFL, the flagship fashion business of the Future Group.
FLFL has in-house retail chains Central and Brand Factory, exclusive brand outlets (EBOs) and multi-brand outlets (MBOs) 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 NCD under OTR”. The due date was June 30, 2022.
This includes a principal amount of Rs 98.35 crore and Rs 27.78 crore for repayment of term loan.
FEL had “to pay an aggregate amount of Rs 126.13 crore (Obligations) (as defined in the OTR Plan) to various banks and lenders (who are parties to the Agreement under OTR Plan) on June 30, 2022 (due date),” said FEL.
Several Future Group firms had entered into OTR plans with their consortium of banks as per terms of a circular issued by the RBI on August 6, 2020.
Similarly, Future Consumer Ltd (FCL) reported a default of Rs 17.2 crore, which includes a principal amount of Rs 15.3 crore and interest of Rs 1.9 crore.
The total amount of outstanding borrowings of the company from banks and financial institutions is Rs 447.8 crore, said FCL, which is in the business of manufacturing, branding and distributing FMCG food and processed food products.
FEL had recently disposed of part of its investment in its general insurance joint venture for a total consideration of Rs 1,266.07 crore.
“The… proceeds have been directly deposited in Trust and Retention Account of the Company, maintained with Central Bank of India on 05 May, 2022,” said FEL.
The proceeds have been appropriated by the lender banks in a specified ratio as agreed between all of them.
“However, since the said distribution ratio is not communicated to the Company, it is not possible for the Company to give the factual information of recovery of principal and interest amount appropriated and present outstanding balances,” FEL added.
All three companies were part of the 19 group firms 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 the billionaire Mukesh Ambani-led Reliance Industries Ltd in April.
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