Future Retail said it didn't meet its obligation of paying Rs 3,494 on Saturday. As discussed with the banks' lenders, the company would co-operate for completing the monetisation of the specified business within the next 30 days, as per the directions of the banks to resolve the current situation, it added.
In April this year, the company had signed the OTR plan to restructure its existing debt in line with the resolution framework sanctioned by the Reserve Bank of India RBI to alleviate COVID 19 related stress.
Future Retail will be obligated to pay an aggregate amount of Rs 3494.56 cr obligations as defined in the OTR Plan to various banks and lenders that are parties to the agreement under the OTR Plan on or before 31 December, 2021 Due Date.
Future Retail is involved in a legal battle with Amazon, which has delayed the acquisition of the former's assets by Reliance Industries Ltd.
Future Retail said that CARE Ratings has downgraded the ratings for its retail instruments in a separate filing.
It said changes factors affect the service of principal repayment due to loans on 31 December, 2021, and it will cause delays in service of principal repayment.