Fu­ture Re­tail pays $14 mil­lion in­ter­est on dol­lar bonds

Hindustan Times (Chandigarh) - - Comment - Suneera Tan­don

NEWDELHI: Kishore Biyani’s flag­ship com­pany Fu­ture Re­tail Ltd, which runs the pop­u­lar su­per­mar­ket chain Big­bazaar, on Mon­day said that it has paid $14 mil­lion (ap­prox­i­mately ₹105 crore) in pend­ing in­ter­est on dol­lar bonds, af­ter miss­ing last month’s due date.

“In fur­ther­ance to our let­ter dated July 22, 2020, wherein we had in­formed about the grace pe­riod of 30 days for mak­ing payment of in­ter­est on above USD notes; to­day we are pleased to in­form that the com­pany has made the payment of said in­ter­est for the half-year for an amount of $14 mil­lion on USD notes,” Fu­ture Re­tail said in a fil­ing.

The com­pany had in­formed the ex­changes last month that it had missed pay­ing in­ter­est on bonds worth $500 mil­lion, due in 2025, which it had raised in Jan­uary. Given the 30-day grace pe­riod for mak­ing the payment, it didn’t con­sti­tute a de­fault. An­other de­lay in payment would have clas­si­fied it as de­fault since the grace pe­riod has ended.

Fu­ture Re­tail is fac­ing a se­vere liq­uid­ity cri­sis and is in ad­vanced talks to sell as­sets to Reliance In­dus­tries Ltd. In July, it had blamed the pan­demic for its weak­ened liq­uid­ity po­si­tion.

It was not im­me­di­ately clear how Fu­ture Re­tail ar­ranged the funds for the in­ter­est payment.

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