In the face of another default, the bonds of Future Retail slumped on Thursday. Future Retail missed another interest payment on its outstanding dollar bonds. The company has been under financial strain due to the lag effect of the pandemic, with most malls shut. India is expected to see its first macro economic contraction in 40 years in FY21.

Rating agencies have already warned that the tight liquidity position continues to remain the biggest headwind for its credit profile. Future group is negotiating a sale to Reliance group, but apparently that seems to be stuck on valuation concerns. It remains to be seen what happens to Future Retail considering RIL is already in talks with Amazon Retail.