Future Enterprises default on principal amount of ₹126.13 cr to banks, lenders

As per the regulatory filing, Future Enterprises defaulted on repayment of the principal amount of approximately 12 non-convertible debentures. The coupon rate on these NCDs ranges from 9.25% to 10.50%.

Further, the Future Group-led company defaulted on repayment of term loans aggregating to around ₹27.78 crore under the OTR.

Among the banks against whom Future Enterprises are — IDBI Bank, Indian Bank, and Central Bank of India.

The highest default on a term loan would be ₹15.76 crore from IDBI Bank. While Future Enterprises defaulted on the principal amount of term loans of ₹9.35 crore from the Indian Bank and about ₹2.65 crore from the Central Bank of India.

In the filing, Future Enterprises said, “The Company was not able to discharge the aforesaid Obligations to banks and lenders, on the Due Date.”

The due date for repayment in the mentioned NCDs and banks is set on September 30, 2022.

“We regret for delayed disclosure from our end due to certain interpretation issue with respect to the present disclosure. We will ensure that the disclosure in this respect would be on prompt and within specified time limit,” Future Enterprises further said.

Also, Future Enterprises highlighted that during the first quarter of FY23, the company had disposed part of its investment in General Insurance Joint Venture for a total consideration of Rs. 1266.07 crore.

It said, “the said realization proceeds had been directly deposited in Trust and Retention Account of the Company, maintained with Central Bank of India on 05 May, 2022.”

Further, Future Enterprises said, “The said realization proceeds have been appropriated by the lender banks in a specified ratio as agreed between all of them.”

However, Future Enterprises also revealed, that since the said distribution ratio has not communicated to the Company till date, it is not possible for the Company to give factual information of recovery of principal and interest amount appropriated and present outstanding balances as well as interest payable for period under review.

Last week, on Friday, the company’s shares closed at ₹1.76 apiece up by 1.15% on BSE.

As per RBI guidelines, on October 27, 2020, Future Enterprises entered into the OTR scheme with a consortium of banks and lenders. The OTR scheme is for COVID-hit companies. The company is trying to reduce its debt through monetisation of assets.