Lenders to Kishore Biyani’s Future Group plan to withdraw the debt recast plans that offers the company easier repayment options, if its Rs 24,713 crore asset sale to Reliance Industries materializes within a reasonable time frame. Lenders have also agreed to extend repayment of loans by up to two years, while converting unpaid interest into a funded interest term loan. The penal charges too will be waived under the recast plan.
The debt recast plan of the company will help it stay afloat. However, the plan will be implemented only if the deal to sell Future's retail, wholesales, warehousing and logistics assets to Reliance Retail Ventures Ltd (RRVL) does not go through. So far, the consortium of lenders has approved the debt restructuring of Future Retail Ltd (FRL), Future Enterprises ltd (FEL) and Future Supply Chain Solutions Ltd. The restructuring plans of FEL and FRL have received approval from the RBI-constituted expert panel, sources said.
The Rs 24,713 crore deal between RIL and Future Group was announced in August last year but it is getting delayed as e-commerce major Amazon is contesting it at several forums, including an arbitration at SIAC and before the Supreme Court.