You are here: Home » Companies » News
Business Standard

Future Lifestyle Fashions defaults on NCD payments worth Rs 31 cr

The gross principal amount on which the default has occurred is Rs 350 crore

Topics
Future Lifestyle Fashions | NCDs | loan default

Press Trust of India  |  New Delhi 

Fashion

on Monday reported default on payments for its non-convertible debentures (NCDs).

In a regulatory filing, the company said it has defaulted on "Payment of annual interest of Rs 30.93 crore for the period between 10 November 2019 to 09 November 2020."

The gross principal amount on which the default has occurred is Rs 350 crore, it added.

According to the company, due to uncertainty created by the COVID-19 pandemic and consequent lockdown and disruption, the revenue of the firm has been adversely impacted.

"The fashion retail business is more impacted due to drops in footfalls, de-growth of revenue, lack of disposable income and discretionary spending by the customer. Consequently, this pandemic had a significant impact on the business and the liquidity position of the Company," it added.

The company had requested the debenture holders to extend the date of payment of annual interest and principal up to January 2021, which has been agreed by two out of three debenture holders.

"However, one Debenture holder has not conveyed its consent to the request made by the Company and exercised put option on the for the value date on 09 November 2020.

"Considering the reasons cited hereinabove, the Company is unable to servicing of annual interest and repayment of principal (to the extent of exercise of put option by one Debenture holder) on the aforesaid NCDs, due and payable on 09 November, 2020," it said.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Mon, November 09 2020. 23:44 IST
RECOMMENDED FOR YOU
.