Debt-ridden Future Lifestyle Fashion announced on Monday that its total outstanding debt has been reduced to Rs 1,827.82 crore as of 31 December 2022, with a total default of Rs 1,465.67 crore.
Future Lifestyle Fashion’s default of Rs 1,465.67 crore is “comprising the persisting default” of Rs 436.01 crore for the September 2022 quarter, according to a regulatory filing.
Its total outstanding loans include “Listed Non-Convertible Debentures of Rs 350 crore” and deferred interest on NCDs of Rs 42.98 crore, according to the company. “There is a reduction in the company’s total outstanding financial indebtedness from Rs 2,008.44 crores as of 30 June 2022, to Rs 1,827.82 crore as of 1 December 2022, due to debt repayments by the Company,” it said.
On 30 April 2021, FLFL’s lenders implemented One Time Restructuring. “As a result of the non-repayment of the principal amount due under the said OTR, the company’s accounts were classified as Non-Performing Assets on 31 May 2022,” the filing stated.
The company informed the BSE in a regulatory update last Friday that it is facing three petitions from creditors seeking to initiate insolvency proceedings against it before the Mumbai bench of the NCLT.
“The matters filed under the Code against the Company before the NCLT for their claim are being defended by the Company before the NCLT. “To date, none of them have been admitted,” it said.
Future Lifestyle Fashion’s portfolio includes in-house retail chains Central and Brand Factory, exclusive brand outlets, and other multi-brand outlets for nearly a dozen apparel brands such as Lee Copper, Champion, aLL, Indigo Nation, Giovani, John Miller, Scullers, Converse, and Urbana.
To reduce its debts, the company was considering asset monetisation.
FLFL was one of 19 group companies in retail, wholesale, logistics, and warehousing that were to be transferred to Reliance Retail as part of a Rs 24,713-crore deal announced in August 2020.
The deal was called off in April by billionaire Mukesh Ambani’s Reliance Industries Ltd. Following that, several Future group companies experienced payment defaults.