Future Enterprises sells 25% stake in joint venture insurance firm

Future Enterprises has defaulted on repayment of Rs 2,911.51 crore of loans to lenders

Future Enterprises has for Rs 1,266.07 crore sold its 25 per cent stake in Future Generali India Insurance Company (FGIICL) to its joint venture partner Generali Participations Netherlands N. V.

Future Enterprises will continue to hold 24.91 per cent stake in FGIICL. “Pursuant to receipt of the key approvals from governmental and regulatory authorities, the said transaction has been consummated on 5th May,” it said in a stock exchange filing.

When it announced the deal in January, the company told exchanges it has received offers from potential buyers for its remaining 24.91 per cent interest in FGIICL.

The company said in January it is exploring options for the sale of its 33.3 per cent interest in the life insurance JV. It expected to complete the exit of its holding in the insurance joint venture in a time-bound manner to meet its commitment under One Time Restructuring Plan implemented under August 6, 2020 circular issued by Reserve Bank of India in relation to resolution framework for Covid-19 related stress.

Future Enterprises has defaulted on repayment of Rs 2,911.51 crore of loans to its lenders, missing 30 days of review period. The company was required to pay an aggregate amount of Rs 2,911.51 crore between March 23 and March 31, 2022, to various consortium banks and lenders, it had earlier said in a regulatory filing.

The company’s debts amount Rs 6,778.29 crore.