The resolution plan to restructure Future Retail’s existing debt under the RBI’s special scheme for COVID-related stress has been approved by a group of 28 lenders. However, the restructuring needs to be approved by an expert committee led by KV Kamath. The resolution plan includes restructuring of Future Retail’s listed non-convertible debentures (NCDs). However, it does not include NCDs issued to certain trusts and US bonds, carrying an annual interest of 5.6 per cent and maturing in 2025.
The restructuring will help the company recover from the COVID-induced financial stress. It will also enable promoter Kishore Biyani to chalk out a new strategy even as he awaits the court’s approval on the sale of the company’s business to Reliance.
The resolution plan will also extend the company’s loan repayment period by two years. It will waive its unpaid penal interest and processing fees from March 2020 till the implementation date of the plan. Additionally, interest accrued between March and September 2020 will be converted into a loan, which the company will have to pay by December.
