Kamath panel okays Future debt recast

NEW DELHI: The debt restructuring of the two Future Group flagship companies—Future Retail Ltd (FRL) and Future Enterprises Ltd (FEL)—has received approval from the RBI-constituted expert panel headed by KV Kamath, according to an industry source.

The Expert Committee under the chairmanship of veteran banker Kamath has approved the debt resolution plan as permitted under the Reserve Bank of India’s resolution Framework for Covid-19-related stress, said the source.

According to him, debt resolution plans for two more Kishore Biyani-led Future Group companies—Future Consumers and Future Lifestyle—are also expected to be cleared by the consortium of lenders.

The RBI has set up a fivemember expert committee under Kamath to suggest financial parameters for resolution of coronavirus-related stressed assets and all debt having aggregate exposure of ₹1,500 crore or above have to be validated by it.

The lenders and the board of both Future Group companies have already approved the respective restructuring plans.

Now, the companies and the lenders would have to complete other formalities and submit it finally before the RBI, he added.