On Monday, Future Retail Ltd averted a default on interest on 5.60% Senior Secured Notes due 2025, worth $14 million to its investors by paying it on the last date of the 30-day grace period. The company informed the stock exchanges of the payment.
"In furtherance to our letter dated 22nd July 2020, wherein we had informed about the grace period of 30 days for making payment of interest on above USD Notes. Today, we are pleased to inform that the Company has made the payment of said interest for the half-year ended for an amount of $14 million on above USD Notes," it said.
"We thank you all the investors and USD Notes holders for their continued confidence in us," it added.
Its $500-million senior secured notes listed in Singapore.
The funds for paying interest to the foreign bondholders were raised from banks which are negotiating a sale of Future's business to Reliance Industries Limited (RIL), a Business Standard report said.
The Future Group's cash crunch has been exacerbated by the COVID-19 pandemic and lockdown. On 22 July, it missed the due date on the USD Notes and said that the pandemic-induced disruptions in its business affected its liquidity and caused it to miss its interest payment. On the same day, S&P Global Ratings had said that it could lower its preliminary rating on Future Retail to 'D' if it felt the company is unlikely to meet its commitment within this grace period.
Shares of Future Retail Ltd closed 5.31 percent lower at Rs 115.85 on NSE on Monday.