Jan 20, 2022
India’s Future Retail Unable to Meet $471 Million Debt Deadline
(Bloomberg) -- Future Retail isn’t in a position to make a payment on 35 billion rupees ($471 million) of past-due debt before the grace period expires and will also miss an upcoming $14 million bond coupon deadline, according to people familiar with the matter.
Embroiled in a legal dispute with Amazon.com Inc. that has damaged its ability to raise funds, the Mumbai-based retailer is coming up against two key milestones that will test creditors’ faith after its onshore debt was already restructured during the pandemic.
Having already missed a Dec. 31 deadline to lenders, Future has until the end of this month to come up with the money for the rupee-denominated debt. But it won’t be able to do so, the people said, asking not to be identified because the discussions are private.
The company will also not be able to make a coupon payment due Jan. 22 on its $500 million bond, according to the people.
A spokesman for the company didn’t immediately respond when contacted by Bloomberg by both email and telephone on Thursday.
Future Retail cited its litigation with Amazon.com as the reason for its inability to complete an asset sale and use those proceeds to repay the rupee debt due late last year.
The dollar bond coupon payment has a 30-day grace period. The company has missed such interest payments before the initial deadlines but then paid within the grace periods.
One of the people said Future would make the dollar bond payment within the grace period.
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