Kishore Biyani-led Future Retail averts a default — settles $14 million interest payment to investors
- The Kishore Biyani-led company has repaid $14 million interest on foreign bonds to investors
- With this repayment, Future Retails has averted a default and concerns over rating downgrade
- Check out the latest news and updates on Business Insider.
AdvertisementFuture Retail has averted a default as it repaid around $14 million (around 100 crore) interest on foreign bonds to investors. The company had to pay the interest on bonds worth $500 million due in 2025.
The company was given a grace period of 30 days, which officially ended on Saturday, but being a holiday, Monday (August 24) will be considered as the last day. Future Group runs the Big Bazaar chain of stores.
"Today, we are pleased to inform that the Company has made the payment of said interest for the half year ended for an amount of $14 million on above USD Notes," the company said in a regulatory filing.
The shares of Future Retail took a hit and fell by 5% on the back of debt repayment deadline concerns.
The board of Future Group was set to assemble on Saturday, for an important meeting on the acquisition. However, that meeting has been postponed by a week, according to reports.
The group has debts of over $2 billion. And while Biyani and his family hold a 33.5% stake in Future Group, almost all of it has been pledged to lenders.
|Percentage of pledged stake
|Future Supply (FSCL)
The already-weak Future Group businesses, too have been hit by the COVID-19 pandemic, which has forced malls and retailers to shut down. Earlier in July, the company had sought an extension on its earnings reports, which has already been pending for two quarters.
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