Bond payment default: Future Enterprises defaults on bond interest payment

NEW DELHI: Kishore Biyani-led Future Enterprises Ltd (FEL) on Thursday said it has defaulted on interest payment of non-convertible debentures.

“The company is unable to service its obligations in respect of the interest on non-convertible debentures (NCDs) due on August 16, 2020, since August 16, 2020 was holiday, interest was due on 17 August 2020,” Future Enterprises Ltd said in a regulatory filing.

The delay in reporting is “due to efforts the company was making to mobilise certain funds for make default good”, it added. The interest due was Rs 12.65 crore, the company said.

According to the filing, the company had issued two series of NCDs of Rs 106 crore and Rs 159 crore, aggregating Rs 265 crore on February 16, 2017 and the tenures would “end on the day falling at the expiry of 5 and 6 years (respectively) therefrom”.

The coupon rate is 9.60 per cent per annum with payment frequency of half yearly basis on February 16 and August 16 each year.

FEL develops, owns and leases retail infrastructure for the Future Group. It handles backend operations of retail business of Future the group.

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