Future Group must pay $14 mn to bondholders this month or face legal action
If bond investors initiate legal action against the company, it could be a huge blow after the Supreme Court's order last week, which stalled Future Retail's mega Rs 24,713 crore deal with Reliance Retail
- Aug 9, 2021,
- Updated Aug 9, 2021 4:44 PM IST
Future Group has to make about $14 million worth of scheduled coupon payments that are due this month, failing which bondholders could initiate legal measures against the Kishore Biyani-led FMCG major.
Industry analysts say if bond investors initiate legal action against the company, it could be a huge blow after the Supreme Court's order last week, which stalled Future Retail's mega Rs 24,713 crore deal with Reliance Retail.
Some investors are, however, wary since they feel they'll have to undertake a huge haircut on the Rs 21,000-crore debt Future Group owes if the company is dragged to insolvency, reported The Economic Times.
The Supreme Court last week upheld e-commerce giant Amazon's plea seeking a hold on the Rs 24,713 crore deal between Reliance Retail and Future Retail.
Also read: RIL-Future deal: SC judgement addresses 2 limited points, not merits of disputes, says FRL
The SC said the Singaporean arbitrator's decision that stalled the deal between the two retail giants holds merit and Amazon's objections are valid as well as applicable in the country.
Future Group owes about Rs 21,000 crore to as many as 28 local and foreign banks, and their hopes were dashed after the recent SC verdict.
Lenders of the debt-ridden Future Retail Ltd had also approved a plan to restructure the existing financial debt of the company under an RBI announced resolution framework for COVID-19 related stress.
The restructuring plan was also approved by an expert committee, formed by RBI under the chairmanship of KV Kamath.
As part of the resolution plan, the debt raised through the non-convertible debentures issued by FRL is part of the existing debt and is proposed to be restructured, it added.
In August last year, the Future group announced to sell its retail and wholesale business Reliance Retail Ventures Ltd (RRVL), the retail arm of billionaire Mukesh Ambani-led Reliance Industries Ltd.
The deal is contested by the e-Commerce major Amazon, which invested in Future Coupons in August 2019 with an option of buying into the flagship Future Retail after a period of three to 10 years.
Also read: Singapore's emergency arbitrator held Future Retail investment 'legal': Amazon in SC
Future Group has to make about $14 million worth of scheduled coupon payments that are due this month, failing which bondholders could initiate legal measures against the Kishore Biyani-led FMCG major.
Industry analysts say if bond investors initiate legal action against the company, it could be a huge blow after the Supreme Court's order last week, which stalled Future Retail's mega Rs 24,713 crore deal with Reliance Retail.
Some investors are, however, wary since they feel they'll have to undertake a huge haircut on the Rs 21,000-crore debt Future Group owes if the company is dragged to insolvency, reported The Economic Times.
The Supreme Court last week upheld e-commerce giant Amazon's plea seeking a hold on the Rs 24,713 crore deal between Reliance Retail and Future Retail.
Also read: RIL-Future deal: SC judgement addresses 2 limited points, not merits of disputes, says FRL
The SC said the Singaporean arbitrator's decision that stalled the deal between the two retail giants holds merit and Amazon's objections are valid as well as applicable in the country.
Future Group owes about Rs 21,000 crore to as many as 28 local and foreign banks, and their hopes were dashed after the recent SC verdict.
Lenders of the debt-ridden Future Retail Ltd had also approved a plan to restructure the existing financial debt of the company under an RBI announced resolution framework for COVID-19 related stress.
The restructuring plan was also approved by an expert committee, formed by RBI under the chairmanship of KV Kamath.
As part of the resolution plan, the debt raised through the non-convertible debentures issued by FRL is part of the existing debt and is proposed to be restructured, it added.
In August last year, the Future group announced to sell its retail and wholesale business Reliance Retail Ventures Ltd (RRVL), the retail arm of billionaire Mukesh Ambani-led Reliance Industries Ltd.
The deal is contested by the e-Commerce major Amazon, which invested in Future Coupons in August 2019 with an option of buying into the flagship Future Retail after a period of three to 10 years.
Also read: Singapore's emergency arbitrator held Future Retail investment 'legal': Amazon in SC