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NEW DELHI: Big Bazaar parent Future Retail (FRL) on Friday said it has missed the due date for repayment of around Rs 5,322 crore to lenders due to the ongoing legal battle with US e-tailer Amazon, among other issues. In 2021, Kishore Biyaniled FRL had entered into a one-time restructuring (OTR) scheme for companies that were impacted by the Covid pandemic, with a consortium of banks and was under an obligation to raise Rs 3,900 crore before March 31, 2022 by way of equity contribution.
“Further, considering the infusion of capital, there was an obligation on the company to pay an aggregate amount of Rs 5,322 crore to various consortium of banks and lenders (who are parties to the agreement under OTR plan) on or before March 31, 2022,” FRL said. Citing breach of contract, Amazon has been trying to block a proposed deal worth Rs 24,700-crore between Future Group and Reliance for Future’s sale of retail and logistics assets to the latter. Last month, however, Reliance moved in to take charge of a majority of FRL’s stores, citing non-payment of rentals.
The development comes close on the heels of a flurry of senior-level exits from the Future Group, including FRL CEO Sadashiv Nayak and the company’s director Rahul Garg. Stating that it was in discussions with the lenders on the matter, FRL said, “the company shall intimate the further developments and updates in this connection as and when applicable”.
“Further, considering the infusion of capital, there was an obligation on the company to pay an aggregate amount of Rs 5,322 crore to various consortium of banks and lenders (who are parties to the agreement under OTR plan) on or before March 31, 2022,” FRL said. Citing breach of contract, Amazon has been trying to block a proposed deal worth Rs 24,700-crore between Future Group and Reliance for Future’s sale of retail and logistics assets to the latter. Last month, however, Reliance moved in to take charge of a majority of FRL’s stores, citing non-payment of rentals.
The development comes close on the heels of a flurry of senior-level exits from the Future Group, including FRL CEO Sadashiv Nayak and the company’s director Rahul Garg. Stating that it was in discussions with the lenders on the matter, FRL said, “the company shall intimate the further developments and updates in this connection as and when applicable”.
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