Future Enterprises Ltd (FEL) on Tuesday said it has defaulted on payment of Rs 19.16 crore to Punjab National Bank, Canara Bank and Union Bank of India under the one-time restructuring plan. This is the second default by FEL this month.
The due date for payment of Rs 19.16 crore was March 28, FEL said in a regulatory filing.
"The company was not able to discharge the aforesaid obligations to respective banks/lenders, on due date," it said.
However, FEL said it had a review period of 30 days from the due date in terms of the RBI circular dated August 6, 2020, and further in terms of provision of the agreement to make payment of the amount.
On March 25, the Future Group firm had informed about defaulting on repayment of Rs 93.99 crore to Punjab National Bank and Canara Bank under the OTR (One Time Restructuring Plan). The deadline for the repayment was March 23.
Several Future Group companies, including FEL, have entered into agreements with their respective lenders in terms of the RBI circular dated August 6, 2020, in which a resolution framework for COVID-related stress was announced.
The group's leading company Future Retail Ltd defaulted on payment of Rs 3,494.56 crore to banks in January under the OTR plan.
FEL is a part of Rs 24,713 crore deal announced by the Future Group in August 2020, under which it is to sell 19 companies operating in retail, wholesale, logistics and warehousing assets to Reliance Retail.
All 19 companies would be consolidated into one entity -- FEL -- and then transferred to Reliance.
In April, Future Group companies will be conducting meetings of their respective shareholders and creditors between April 20 to April 23, 2022 to seek their approval for the Rs 24,713 crore deal.
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