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.

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.