KV Kamath committee clears Future Retail, Future Enterprises debt recast plans

V2 Retail | Bennett Coleman & Co Ltd sold 1,81,823 equity shares in the company at Rs 98 per share on the NSE.

KV Kamath-led expert committee on April 21 cleared Future Retail and Future Enterprises debt recast plans, reported CNBC-TV18, citing sources.

Under the new plans, the repayment of loans will be extended up to two years, while the unpaid interest to be converted into a funded interest term loan. The penal charges will too be waived off under the recast plan.

Sources say KV Kamath-led Expert Committee clears Future Retail & Future Enterprises debt recast plans @_ritusingh pic.twitter.com/BdgYgmUkFR

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— CNBC-TV18 (@CNBCTV18Live) April 21, 2021

The resolution plan for Future Retail was already approved by the lenders and submitted to the KV Kamath-led expert committee for approval.

Future Retail Debt Restructuring: Board approves resolution plan, sets April 26 as execution deadline

As part of the plan, debt raised through Non-Convertible Debentures (NCD) issued by the company is proposed to be recast. It said that 100 percent of its NCD holders have agreed to the amended terms as per the resolution plan.

Earlier on April 18, the Board of Future Retail approved a resolution plan to restructure secured financial debt from the company’s bankers. It had targeted to execute the plan by April 26, 2021.

“The board of directors of the Company, at its meeting held on April 17, 2021, has approved a resolution plan to restructure existing secured financial debt from the company’s bankers as permitted under the Reserve Bank of India’s Resolution Framework for COVID 19 related stress,” the Kishore Biyani-led Future Retail said in its stock exchange filing.

As per a Care Ratings note from October 2020, Future Retail had loans worth Rs 6,278 crore, including long-term term loans of Rs 528 crore, Long-term fund based bank facilities of Rs 3,250 crore and short-term non-fund based bank facilities of Rs 2,500 crore. CNBC-TV18 further reported that it has issued outstanding NCDs of Rs 299 crore, and a Fixed Deposit Programme of Rs 700 crore.

Future Retails’ lenders include Union Bank of India, Bank of India, Bank of Baroda, State Bank of India, Indian Bank, Central Bank of India, Punjab National Bank, UCO Bank, Bajaj Finance, Axis Bank, IDBI Bank, IDFC First Bank, Rabo Bank, Yes Bank, IndusInd Bank, HDFC Bank, J&K Bank, Barclays, Kotak Bank, Qatar National Bank, RBL Bank, DBS Bank India, Shinhan Bank, Mannapuram Finance and Punjab & Sind Bank.