Future Enterprises defaults on Rs 93.99 cr payment to PNB and Canara Bank

Future Enterprises Ltd on Thursday said it has defaulted on payment of Rs 93.99 crore to Punjab National Bank and Canara Bank under the one-time restructuring (OTR) plan.

Topics


Future Enterprises | Punjab National Bank | Canara Bank

Future Enterprises Ltd on Thursday said it has defaulted on payment of Rs 93.99 crore to Punjab National Bank and Canara Bank under the one-time restructuring (OTR) plan.

The due date for payment of the amount was March 23, a regulatory filing by Future Enterprises Ltd (FEL) said.

“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 above due date in terms of the RBI circular dated August 6, 2020, and further in terms of provision of the above Agreement to make the payment of above amount.

“The Company shall intimate the further development and updates in this connection as and when applicable,” FEL added.

Several Future group companies including FEL has entered into agreement with their respective lenders in terms of the RBI circular dated August 6, 2020, in which a resolution Framework for COVID 19 related Stress was announced.

Group’s leading company Future Retail has already 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, in which it had announced to sell 19 companies operating in retail, wholesale, logistics and warehousing assets to Reliance Retail.

As part of the deal, Future Enterprises Limited is the transferee company to Reliance Retail.

All 19 companies would be consolidated into one entity — FEL — and then transferred to Reliance.

In April, Future group companies are conducting meetings of their respective shareholders and creditors between April 20 to April 23, 2022, to get their approval for the Rs 24,713 crore deal.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.


We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor