NEW DELHI: Big Bazaar-parent Future Retail (FRL) on Friday said it has missed the due date for repayment of around Rs 5,322 crore to lenders due to the ongoing legal battle with US e-tailer Amazon among other issues.
In 2021, Kishore Biyani-led FRL had entered into a one time restructuring (OTR) scheme for companies that were impacted by the pandemic, with a consortium of banks and was under obligation to raise Rs 3,900 crore before March 31, 2022 by way of equity contribution.
“Further, considering the infusion of capital, there was an obligation on the company to pay an aggregate amount of Rs 5,322.32 crore to various consortium banks and lenders (who are parties to the agreement under OTR Plan) on or before March 31, 2022 (‘due date’),” FRL said in a regulatory filing on Friday.
Citing breach of contract, Amazon has been trying to block a proposed Rs 24,700-crore deal between Future Group and Reliance for Future’s sale of retail and logistics assets to the latter. Last month, however, Reliance moved in to take charge of a majority of FRL’s stores citing non-payment of rentals.
The development comes close on the heels of a flurry of senior-level exits from the Future Group, including FRL CEO Sadashiv Nayak and the company’s director Rahul Garg.
Stating that it was in discussions with the lenders on the matter, FRL said, “the company shall intimate the further developments and updates in this connection as and when applicable”.
The Future Group firm had missed an earlier deadline on December 31, 2021 for payment of Rs 3,494.56 crore to the banks.
FRL operates various retail formats across India, including Big Bazaar, Koryo, Foodhall and Easyday and is among the 19 Future Group companies expected to be a part of Reliance Retail as part of the deal announced in August 2020.
In 2021, Kishore Biyani-led FRL had entered into a one time restructuring (OTR) scheme for companies that were impacted by the pandemic, with a consortium of banks and was under obligation to raise Rs 3,900 crore before March 31, 2022 by way of equity contribution.
“Further, considering the infusion of capital, there was an obligation on the company to pay an aggregate amount of Rs 5,322.32 crore to various consortium banks and lenders (who are parties to the agreement under OTR Plan) on or before March 31, 2022 (‘due date’),” FRL said in a regulatory filing on Friday.
Citing breach of contract, Amazon has been trying to block a proposed Rs 24,700-crore deal between Future Group and Reliance for Future’s sale of retail and logistics assets to the latter. Last month, however, Reliance moved in to take charge of a majority of FRL’s stores citing non-payment of rentals.
The development comes close on the heels of a flurry of senior-level exits from the Future Group, including FRL CEO Sadashiv Nayak and the company’s director Rahul Garg.
Stating that it was in discussions with the lenders on the matter, FRL said, “the company shall intimate the further developments and updates in this connection as and when applicable”.
The Future Group firm had missed an earlier deadline on December 31, 2021 for payment of Rs 3,494.56 crore to the banks.
FRL operates various retail formats across India, including Big Bazaar, Koryo, Foodhall and Easyday and is among the 19 Future Group companies expected to be a part of Reliance Retail as part of the deal announced in August 2020.
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