Lenders to Future Enterprises, Future Supply Chain Solutions approve debt restructuring
The Future group got yet another relief when lenders to two more firms —Future Enterprises and Future Supply Chain Solutions — approved resolution plans to restructure their existing secured financial debt.
This comes on the back of a consortium of 28 banks giving the green signal to the debt recast of the group’s flagship firm Future Retail Ltd (FRL), under the resolution framework for Covid-19-related stress announced by the RBI last year.
The boards of both Future Enterprises and Future Supply Chain Solutions have approved their lenders’ plans to restructure their existing secured financial debt, they said in separate regulatory filings.
Among them, Future Enterprises has 19 lenders, including HDFC Bank, IDBI Bank, Indian Bank, Axis Bank, Canara Bank, Central Bank of India, Indian Overseas Bank, Punjab National Bank, Bank of India and SBI.
Though the company did not announce the total debt under the restructuring, a December 2020 report from Care Ratings, has put it at around Rs 1,777 crore. This includes long-term term loans of Rs 550 crore, long-term fund-based bank facilities of Rs 625 crore, and short-term non-fund based bank facilities of Rs 602 crore.
Under the debt restructuring scheme for Future Enterprises, the lenders have approved the “repayment of short term loans, term loans, non convertible debentures, overdue working capital loans/CPs (converted into working capital term loans) to be extended up to a maximum of two years’’.
For Future Enterprises, there would an interest moratorium between March 1, 2020 and September 30, 2021 and all penal interest and charges, default premiums, processing fees unpaid between the period is to be waived off fully.
Further, there will be an interest moratorium between March 1, 2020 to September 30, 2021. Interest during the period shall be converted into Funded Interest Term Loan (FITL) which shall be payable by March 2022.
The debt recast at Future Supply Chain Solutions has been approved by three lenders, including SBI, Yes Bank and IDFC First Bank.
The terms are similar to the other two group firms. While repayment of all term loans will be extended by two years, the upaid interest on loans shall be converted into FITL which shall be payable in two tranches by December. FITL is a fresh loan provided to a stressed borrower for repayment of existing debt.