In July, Future Retail had blamed the novel coronavirus pandemic for its weakened liquidity position.
Future Retail is facing a severe liquidity crisis and is in advanced talks to sell assets to Reliance Industries Ltd
Kishore Biyani’s flagship company Future Retail Ltd, which runs the popular supermarket chain BigBazaar, on Monday said it has paid $14 million (approximately ₹105 crore) in pending interest on dollar bonds, after missing last month’s due date.
“In furtherance to our letter dated 22 July 2020, wherein we had informed about the grace period of 30 days for making payment of interest on above USD Notes; today we are pleased to inform that the company has made the payment of said interest for the half-year for an amount of $14 million on above USD Notes," Future Retail said in a filing to the stock exchanges.
The company had informed the stock exchanges last month that it had missed paying interest on bonds worth $500 million, due in 2025, which it had raised in January.
Given the 30-day grace period for making the payment, the miss did not constitute a default.
Another delay in payment would have classified it as default since the grace period has ended.
Future Retail is facing a severe liquidity crisis and is in advanced talks to sell assets to Reliance Industries Ltd.
In July, it had blamed the novel coronavirus pandemic for its weakened liquidity position.
“We would like to inform that due to the nationwide lockdown imposed to restrict the spread of the covid-19 pandemic, and the consequent restricted business operations of the company, the liquidity position has been affected, causing us to miss the service of the payment of interest due on the USD Notes (listed on Singapore Stock Exchange) on 22nd July 2020," last month’s filing had said.
In July, S&P Global Ratings said that Future Retail has indicated that it will make the payments within the grace period through various means.
“The company has indicated that it expects to make the coupon payment within the grace period by (i) improving operating cash flow through bank funding; or (ii) arranging for alternative sources of funding, including the sale of certain assets," the rating agency said in a note then.
It was not immediately clear how Future Retail arranged the funds for the interest payment.