The Kishore Biyani-sponsored company, which raised $500 million in an overseas bond offering yielding 5.6% in January 2020, has a one-year grace period. months until February 22 to make the payment of the semi-annual coupon.
Even that may be difficult if he fails to settle local bank dues by the end of the month, sources said.
Future Retail, which had missed a payment of ₹3,494 crore to local lenders on December 31, has time until January 29 to prevent the account from defaulting. If this is missing, local lenders will classify the account as a non-performing loan on January 30.
And they may object to the company paying the foreign bondholders since the two are at par as secured creditors. Local banks can let Future Retail know that their dues must be paid before making payments to foreign bondholders, one of the people quoted above said.
“Since the company has defaulted on local banks, they (local lenders) will surely object to hypermarkets paying bondholders in foreign currency,” an executive from one of the local lenders told ET. .
Another person said payment to bondholders can be made if Supreme Court rules approve the deal between Future Group and Reliance Industries-related entities before Feb. 22, the end of the grace period.