Active Stocks
Tue Apr 16 2024 15:59:30
  1. Tata Steel share price
  2. 160.05 -0.53%
  1. Infosys share price
  2. 1,414.75 -3.65%
  1. NTPC share price
  2. 359.40 -0.54%
  1. State Bank Of India share price
  2. 751.90 -0.65%
  1. HDFC Bank share price
  2. 1,509.40 0.97%
Business News/ Companies / News/  Banks act against Future Retail for missing payments
BackBack

Banks act against Future Retail for missing payments

Being classified as an NPA will raise financial troubles for Future Retail, which has for months tried to sell its retail assets to rival Reliance Industries, but failed to do so because of legal challenges from its partner Amazon.com Inc.

The letter said transactions of almost ₹7,000 crore were undertaken between Future Retail and group company FEL in a fiscal year.mint (MINT_PRINT)Premium
The letter said transactions of almost 7,000 crore were undertaken between Future Retail and group company FEL in a fiscal year.mint (MINT_PRINT)

MUMBAI : Lenders to India's Future Retail have started classifying loans to the retailer as a "non-performing asset" after the company missed payments to the banks, they told the country's Supreme Court in a filing seen by Reuters.

The lenders also said they would be required by law to provision 80 billion-90 billion Indian rupees ($1.07 billion-$1.2 billion) in their books on account of the default by the country's second-largest retailer.

"Lenders have already classified/begun classifying the loan account of FRL as a non-performing asset ("NPA") since the payment was not made within" the stipulated time, they said in the filing, reviewed by Reuters.

Future declined to comment.

Being classified as an NPA will raise financial troubles for Future, which has for months tried to sell its retail assets to rival Reliance Industries, but failed to do so because of legal challenges from its partner Amazon.com Inc.

Citing its dispute with Amazon, Future last month challenged its lenders in the top court to avoid facing insolvency proceedings or being classified as a defaulter, after it missed making certain payments on its loans.

Future has failed to complete its $3.4 billion retail asset sale as Amazon has successfully argued before legal forums that the Indian retail giant violated certain non-compete contractual terms the two sides had. Future denies any wrongdoing.

Future has told Indian stock exchanges it was unable to pay 35 billion rupees ($470 million) it owed to its lenders on Dec. 31 as it could not sell certain small stores amid the row with Amazon. It had hoped to use a 30-day grace period to resolve the situation, but was not able to do so.

(Reporting by Aditya Kalra and Abhirup Roy; Editing by Sam Holmes and Gerry Doyle)

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 03 Feb 2022, 01:17 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App