Future Retail lenders hope for a debt recast plan

Lenders to Future Retail are hopeful of approving a debt recast plan by the end of this month, with the final draft being circulated among lenders for approval, two bankers aware of the development said.

The plan will entail a two-year moratorium on repayments without any changes in the prevailing interest rate, the bankers said on condition of anonymity.

This is similar to what lenders have also agreed on for Future Lifestyle Fashions Ltd, a group company that runs the Central and Brand Factory outlets.

The recast will be done under the Reserve Bank of India’s (RBI) special window for pandemic-hit borrowers.

Future Retail owes banks Rs 6,278 crore, showed data from Care Ratings. On an aggregate basis, Future group owes $3 billion in loans, and lenders are trying to figure out a way to ensure the least possible hit on asset quality.

The group also owes mutual funds that had invested in securities sold by group entities, including Rivaaz Trade Ventures, NuFuture Digital India and Future Ideas Co.