Future Retail pays $14 mn interest on USD notes in grace period

Debt-ridden Future Retail has made a payment of $14 million (about ₹104.55 crore) for interest due on the dollar-denominated notes (USD Notes) listed on the Singapore Stock Exchange after missing the due date last month.

The USD notes had a grace period of 30 days for making the payment of interest, Future Retail, which operates chains such as Big Bazaar and Easyday and Heritage among others, said in a regulatory filing.

“Further, we would like to inform that on 18th February 2022 the company has made the payment of said interest for the half-year ended for an amount of $14 million on above USD Notes,” the Future Group firm said.

The Senior Secured Notes notes had an interest of 5.60% and due in 2025.

Future Retail, on January 24, 2022, had said it had a payment of interest due on the USD Notes as its liquidity position had remained affected due to the continued impact of the COVID-19 on its business operations.

“This has caused us to miss the service of the payment of interest due on the USD Notes (listed on Singapore Stock Exchange) on 24th January 2022,” Future Retail had said.

The Kishore Biyani firm also defaulted on payment of ₹3,494.56 crore to its lenders in January. Future Retail last year entered into a one-time restructuring (OTR) scheme with a consortium of banks and lenders as per the RBI circular dated August 6, 2020, and was to discharge “an aggregate amount of ₹3,494.56 crore” by December 31, 2021.