Debt-ridden Future Enterprises Ltd (FEL) on Friday said it has defaulted on payment of interest on two non-convertible debentures totalling Rs 3.58 crore.
The due date for payment was October 27, 2022, FEL said in a regulatory filing.
"The company is unable to service its obligations in respect of the interest on Non-Convertible Debentures due on October 27, 2022," it said.
The debentures have coupon rates of 9.80 percent and 9.28 percent per annum and the default has happened towards payments of interest of Rs 1.48 crore and Rs 2.10 crore, respectively.
FEL has defaulted on interest payments for the period from April 26, 2022, to October 26, 2022.
The total amount of securities issued was Rs 75 crore and a default has occurred on this gross principal amount.
The debt-ridden Future group has been facing three petitions filed by its operational creditors before the National Company Law Tribunal (NCLT) to initiate insolvency proceedings against the company.
Lenders of FEL have also appointed an auditor for conducting a forensic audit of the firm. FEL had recently defaulted on payment of interest on several non-convertible debentures.
It is engaged in the business of manufacturing, trading, leasing of assets and logistics services. It used to develop, own and lease the retail infrastructure for the Future Group.
FEL also holds the group's investments in subsidiaries and joint ventures, including in sectors like insurance, textile manufacturing, supply chain and logistics.
It was part of the 19 group companies operating in the retail, wholesale, logistic, 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 Reliance Industries in April after it failed to get lenders' support.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
