Lenders to withdraw debt recast if Future, RIL deal goes through

New Delhi, April 22

Lenders to Kishore Biyani’s Future Group will withdraw the just-approved debt recast plan that offered easier repayment options, if the troubled retailer’s Rs 24,713-crore asset sale to Reliance Industries Ltd (RIL) goes through in a reasonable time frame, sources said.

Lenders of Future Retail last week 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 recast plan has been approved by a RBI-constituted expert committee headed by KV Kamath.

Banking sources said the debt recast is actually ‘Plan B’ to help the nation’s largest retailer stay afloat. The recast will kick in only if the deal to sell Future’s retail, wholesales, warehousing and logistics assets to Reliance Retail Ventures Ltd (RRVL) does not go through.

If the Reliance deal goes through, the recast plan will be withdrawn.

Lenders, they said, are still banking on ‘Plan A’ which is asset sale to RIL.

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 arbitration at SIAC and before the Supreme Court, which on Monday stayed the ongoing proceedings before the Delhi High Court.

Citing delay, RRVL has also extended the timeline for the deal to be completed by six months to September 30, 2021. — PTI

LOAN REJIG PLAN

• Lenders of Future Retail last week agreed to extend repayment of loans by up to two years. The penal charges too will be waived under the recast plan
• The recast plan has been approved by a RBI-constituted expert committee headed by KV Kamath
• Banking sources said the debt recast is actually ‘Plan B’ to help the nation’s largest retailer stay afloat