Also, cash credit will be continued to the company but at a reduced level based on the assessment by banks, and all penal interest and charges, default premiums, processing fees unpaid since March 2020 to the implementation date of the resolution plan will be waived off fully.
Furthermore, as a part of the resolution plan, debt raised through NCDs are also part of the restructuring process and the company has taken consent from all the NCD holders to amend the terms and conditions of the NCDs as per the resolution plan approved by the lenders.
In an exchange notification, the company said, the pandemic has deeply impacted its long-term business viability and led to significant financial stress across the industries. “The debt burden has become disproportionate relative to the cash flow generated by the company owing to the multiple lockdowns since the pandemic surfaced, posing significant financial stability risks to the business. Hence, the restructuring of the debt is crucial and essential”, it said.
According to rating agency Care Ratings, as of October 2020, Future Retail
had loans worth Rs 6,278 crore, including long-term term loans of Rs 528 crore, long-term fund-based bank facilities of Rs 3,250 crore, and short-term non-fund based bank facilities of Rs 2,500 crore.
In August last year, Future Group had announced that it will sell its retail and wholesale business to Reliance Retail Ventures for Rs 24,713 crore. However, the deal has not gone through as Amazon has contested the scheme of arrangements of the deal. E-commerce giant Amazon had invested in Future Coupons in August 2019.
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