Kishore Biyani-led Future Retail has missed the deadline for payment of ₹3,494.56 crore to banks and other lenders as its sale of assets was hampered due to its ongoing legal dispute with e-commerce giant Amazon.
Future Retail said due to ongoing litigation with Amazon.com NV Investment Holdings LLC that the company was unable to complete the planned revenue generation of the specified business on the due date.
“As discussed with the banks or lenders, the company will work together to complete the revenue generation of the specified business within the next 30 days according to the banks’ instructions to resolve the current situation,” the company said in a stock exchange filing today. .
The company has an audit period of 30 days (from the above due date) according to the RBI circular of 6 August 2020 and further in relation to the provision of the above agreement to make the payment.
“The company must inform about the further development and updates in this regard, where relevant,” it states.
Future Retail had last year entered into a one-off restructuring scheme (OTR) for COVID-19 affected companies with a consortium of banks and lenders and was to release “a total amount of ₹3,494.56 crore “on or before December 31, 2021.
In April 2021, Lenders of Future Retail had approved restructuring the company’s existing financial debt under an RBI announced settlement framework for COVID-19-related stress.
The said restructuring had covered FRL’s demand for working capital, loans, fixed-term loans, cash loans, short-term loans, NCDs, discount limits for purchase invoices, other working capital loans and unpaid interest, which became overdue.
There were 28 banks that have lent money to the group’s retail company and participated in the exercise.
By August 2020, the Future Group had announced one ₹24,713 crore agreement for the sale of the retail and wholesale business and the logistics and warehousing business to Reliance Retail Ventures Ltd, a subsidiary of Reliance Industries Ltd.
However, the large e-commerce company Amazon disputes the deal through its 49 percent stake in Future Coupons Pvt Ltd (FCPL), which is a shareholder in Future Retail. The case is currently in dispute with the Supreme Court and the Singapore International Arbitration Center (SIAC).
* With PTI inputs
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