- Future Retail is closer to an agreement with Mukesh Ambani-led Reliance Retail as the Kishore Biyani company crossed the first big hurdle by repaying Rs 100 crore.
Future Retail is closer to an agreement with Mukesh Ambani-led Reliance Retail as the Kishore Biyani company crossed the first big hurdle by repaying Rs 100 crore interest on Monday’s $500 million foreign currency bonds. Future Enterprises, Future Retail’s parent company, has postponed its board meeting to take place on 22 August, by a week to 28 August. It’s learned that the company had to delay the financial results due to some delay in talks with Reliance Retail last week, though efforts are ongoing to discuss the outlines of the deal, after which the company will announce the results.
The skipped interest payment on foreign currency bonds classified in Singapore would have resulted in the company’s downgrade to ‘default’ and lenders would have placed tremendous strain on repayment of the pending dues or invoked pledged securities. The mid-cap business made the payment on the last 30 day grace period date. It was initially expected to pay interest on July 22 but missed the deadline, during which it was given a grace period of 30 days to accept interest payment.
“In addition to our letter dated July 22, 2020, in which we had told about the grace period of 30 days for payment of interest on USD Notes above. Today, we are pleased to inform you that the Company has made payment of that interest for the half-year ended for an sum of $14 million on USD Notes above,” Future Retail said in a filing to the Bombay Stock Exchange on Monday.