This is the second default by FEL this month.
The due date for payment of ₹19.16 crore was March 28, FEL said in a regulatory filing.
“The company was not able to discharge the aforesaid obligations to respective banks/lenders, on the due date,” it said.
However, FEL said it had a review period of 30 days from the due date in terms of the RBI circular dated August 6, 2020, and further in terms of the provision of the agreement to make payment of the amount.
On March 25, the Future Group firm had informed about defaulting on repayment of ₹93.99 crore to Punjab National Bank and Canara Bank under the OTR (One Time Restructuring Plan). The deadline for the repayment was March 23.
Several Future Group companies, including FEL, have entered into agreements with their respective lenders in terms of the RBI circular dated August 6, 2020, in which a resolution framework for COVID-related stress was announced.
The group’s leading company Future Retail Ltd defaulted on a payment of ₹3,494.56 crore to banks in January under the OTR plan.
FEL is a part of ₹24,713 crore deal announced by the Future Group in August 2020, under which it is to sell 19 companies operating in retail, wholesale, logistics and warehousing assets to Reliance Retail.
All 19 companies would be consolidated into one entity — FEL — and then transferred to Reliance.
In April, Future Group companies will be conducting meetings of their respective shareholders and creditors between April 20 to April 23, 2022 to seek their approval for the ₹24,713 crore deal.
This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.