Future group's arm defaults on debenture repayments in February

Future Consumer, part of the embattled Future group, has defaulted on the payment of interest and principal due on unlisted non-convertible bonds issued to CDC Emerging Markets.

The deferred coupon (interest) component amount was Rs 5.49 crore and the principal amount was Rs 21.18 crore. The principal covered deferred installment of Rs 9 .41 crore and the February installment of Rs 11. 76 crore, the company said in an exchange  filing.

The share of Future Consumer closed 1.57 per cent higher at Rs 7.12 per share on Wednesday.

In February 2018, the company had issued debentures for Rs 200 crore with seven-year tenure at a coupon rate of 11.07 per cent per annum.

On February 3, CARE Ratings affirmed a “D” rating for Future Consumer’s long and short-term bank facilities. The liquidity profile of the company remains poor on account of slower-than-anticipated recovery after the easing of lockdown restrictions and weakened credit profile.

The unavailability of external funding has significantly hampered the company’s ability to generate adequate cash flows. The company’s working capital limits remain fully utilised. FCL had implemented the one-time restructuring plan May 7, 2021, the rating agency said.

Future Consumer operates as a food company. The company’s line of business include branding, marketing, sourcing, manufacturing, and distribution of basic foods and personal hygiene and home care products of private label brands of the Future Group.