The interest due was about $14 million on the 5.6% notes that mature in 2025, according to Bloomberg data. The price of the notes jumped 1.4 cents to a one-month high at 86.3 cents after the news, according to prices compiled by Bloomberg. The company’s Mumbai-listed shares rose 5.5% as of 1:10 pm in Mumbai on Friday, set for the biggest gain in a week.
The company had proposed last month to make the payment within a 30 day grace period. Future had also missed an interest payment on the same bonds last year before honouring that obligation later.
The company is embroiled in a protracted legal battle between tycooon Mukesh Ambani’s Reliance Industries and Future’s partner, Amazon.com. Amazon has called for a takeover by Reliance to be blocked. Meanwhile, a cash crunch at Future stemming from long-term competition from e-commerce firms has been exacerbated by the pandemic.