“The company is unable to service its obligations in respect of the interest on Non-Convertible Debentures due on October 27, 2022,” it said.
The debentures have a coupon rates of 9.80 per cent and 9.28 per cent per annum and the default has happened towards payments of interest of Rs 1.48 crore and Rs 2.10 crore, respectively.
FEL has defaulted on interest payments for the period from April 26, 2022 to October 26, 2022.
The total amount of securities issued was Rs 75 crore and a default has occurred on this gross principal amount.
The debt-ridden Future group has been facing three petitions filed by its operational creditors before the National Company Law Tribunal (NCLT) to initiate insolvency proceedings against the company.
Lenders of FEL have also appointed an auditor for conducting a forensic audit of the firm. FEL had recently defaulted on payment of interest on several non-convertible debentures.
It is engaged in the business of manufacturing, trading, leasing of assets and logistics services. It used to develop, own and lease the retail infrastructure for the Future Group.
FEL also holds the group’s investments in subsidiaries and joint ventures, including in sectors like insurance, textile manufacturing, supply chain and logistics.
It was part of the 19 group companies operating in the retail, wholesale, logistic and warehousing segments, which were supposed to be transferred to
Retail as part of a Rs 24,713-crore deal announced in August 2020.
The deal was called off by
in April after it failed to get lenders’ support. PTI KRH HVA