Debt-ridden Future Retail Ltd, which runs the supermarket chain Big Bazaar, missed an interest payment on outstanding dollar bonds on July 22. The development highlights the deteriorating liquidity position of the Future group.
The future group missed paying $14 million (approx Rs 105 crore) interest due on July 22 on its offshore bonds worth $500 million due in 2025. The company raised the amount six months ago in January. The missed interest payment, however, does not constitute a default as the terms of the bonds allow for a 30-day grace period for payment.
Due to the nationwide lockdown and subsequent restricted business operations, the company's liquidity position has been affected, causing us to miss the service of the payment of interest due on the USD Notes (listed on Singapore Stock Exchange) on July 22, the company said in the exchange filing, reported Mint.
"The terms of issuance of the USD Notes provides for an additional period of 30 days for payment of interest from the due date, in case the same could not have been paid on the original due date," the company informed stock exchanges.
The company has proposed to make payment of the interest within 30 days from the interest due date on the USD Notes.
"We are in the process of ensuring that payment of such interest is made within this additional time period," it said.
Kishore Biyani, the chief executive officer of Future Group, is reportedly in discussion to sell parts of his retail empire, including the flagship Future Retail. Other group businesses, including Future Supply Chain Solutions Ltd and its stake in insurance joint ventures are also up for sale.
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!
