Future Enterprises Defaulted In Paying NCD Interest
Future Enterprises defaulted in paying NCD interest, investors got stuck over Rs 1 crore.
The troubles of debt-ridden Future Enterprises Limited (FEL) are not taking its name. The company is unable to pay its lenders and investors.
On Wednesday, Future Enterprises Ltd said it has defaulted on the interest payment of Rs 1.06 crore of its non-convertible debentures (NCDs).
FEL in a regulatory filing stated that the payment due date was May 17, 2022. It said, “The company is unable to meet its obligations in respect of interest on non-convertible debenture.”
In such a situation, the interest money of the investors who had invested in the non-convertible debentures of the company is stuck.
The Kishore Biyani-led Future Group firm has defaulted on several payments in the past three months. This new default is on interest on securities issued for an amount of Rs 23 crore.
FEL has defaulted on interest payment for the period between November 11, 2021, to May 16, 2022. These debentures are secured and have a coupon rate of 9.28 percent per annum.
Earlier last month, FEL had informed the stock exchanges about the default of Rs 2,835.65 crore in the consortium of banks. Its due date was 31 March 2022.
FEL was part of 19 group companies operating in the retail, wholesale, logistics, and warehousing segments.
These were to be transferred to Reliance Retail under the Rs 24,713 crore deal announced in August 2020.
But, the deal was canceled last month by billionaire Mukesh Ambani-led Reliance Industries Ltd.
Amid such a situation, debt-ridden Future Group on May 5 said it has sold its 25 percent stake in Future Generali India Insurance Company Ltd (FGIICL) to its joint venture partner Generali for Rs 1,266.07 crore.
The company had said, “The said transaction was completed on May 5, 2022, after obtaining approval from the government and regulatory authorities.
