Some of the entities of Kishore Biyani-controlled Future group, for whom payments were due on Thursday (March 31, 2022), have defaulted.
Senior bank executives said the group entities are facing liquidity pressures and hence, are unable to make payment on time.
However, information about the amount of dues with names of entities was not available.
Going by provision in the One-Time Restructuring (OTR) plan, they have a 30-day curation period. Only when companies are not able to make payments in this period, would they slip into the bad loan category, bankers said.
Bank officials said there is still a hope for Reliance and Future Group deal to go through and lenders are trying to get some confirmation from Reliance on the deal. If this fructifies, there is a chance of dues repayment.
The main entity of group, Future Retail, is locked in legal battles with US retail major Amazon and has already become NPA in the current quarter. Lenders to FRL are preparing to file applications with Debt Recovery Tribunal and also approach National Company Law Tribunal (NCLT) for bankruptcy and insolvency proceedings.
As for Future Enterprises Ltd (FEL), bankers said they have sold the stake in Future Generali India Insurance Company Ltd (Future Generali) and indicated proceeds of that deal are to be used to pay dues.
According to a source in the know, FEL is expected to make the payment by mid-April as the deal with Generali Participations Netherlands N. V. (Generali) is expected to be completed by then.
In January 2022, FEL agreed to sell a 25 per cent stake in Future Generali to Joint Venture partner, Generali Participations Netherlands N V (Generali) for a cash consideration of Rs 1,252.96 crores, plus an additional consideration that is linked to the date of the closing of the transaction.
Future Lifestyle has already made its installment payment to banks, sources in the know said.