Future Retail Ltd (FRL) not in a position to make of past-due debt
22 January 2022, Mumbai:
Future Retail Ltd (FRL) isn't in a position to make a payment on 35 billion rupees ($471 million) of past-due debt before the grace period expires.
Future Retail Ltd. isn’t in a position to make a payment on 35 billion rupees ($471 million) of past-due debt before the grace period expires and will also miss an upcoming $14 million bond coupon deadline, according to people familiar with the matter.
Its dollar bond fell following the news, suffering its biggest decline in about three weeks on Friday.
Embroiled in a legal dispute with Amazon.com Inc. that has damaged its ability to raise funds, the Mumbai-based retailer is coming up against two key milestones that will test creditors’ faith after its onshore debt was restructured during the pandemic.
Already missed a Dec. 31 deadline to lenders, Future has until the end of this month to come up with the money for the rupee-denominated debt. But it won’t be able to do so, the people said, asking not to be identified because the discussions are private.
The company will also not be able to make a coupon payment due Jan. 22 on its $500 million bond, according to the people.
A spokesman for the company didn’t immediately respond when contacted by Bloomberg by both email and telephone on Thursday.
BUSINESS STANDARD (The news article has not been edited by DFU Publications staff)