InvestorQ : How did Future Retail manage to avoid the default on 24 August on its dollar loans?
Arti Chavan made post

How did Future Retail manage to avoid the default on 24 August on its dollar loans?

Answer
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diksha shah answered.
2 months ago


There was some sense of relief for the Future group as its retailing arm, Future Retail, managed to avert a default by paying up the interest due of $14 million or nearly Rs.100 crore. This pertained to the company’s dollar denominated debt.

It had a grace period of 30 days under the clauses of the dollar debt paper but even that 30-day grace period was getting over on 24 August. By paying up on time, Future has not only managed to avoid being declared defaulter but averted a rating downgrade too.

It may be recollected that Future Retail had raised $500 million through dollar denominated bonds in Jan-20 at 5.6%. However, the lockdown brought its operations to a standstill and cash flows dried up forcing the company to default I na previous commitment.

Future group is in talks to sell out its retail arm to Reliance group although the finer points of the deal are yet to be agreed upon. It looks like Future group received interim funding from a bank on assurance of an early stake sale.