Future Retail CEO Sadashiv Nayak quits; group entities default on payments

Some of the entities of Kishore Biyani-controlled Future group, for whom payments were due on March 31, have defaulted.

In a related devel­opment, Future Retail’s Chief Executive Officer (CEO) Sadashiv Nayak on Thursday resigned from the post seven months after his appointment, according to a filing. Future Group CEO Kishore Biyani has been reappointed executive chairman of the company for three years, subject to regulatory approvals.

Senior bank executives said the group entities —facing liquidity pressures — were unable to make payment on time. However, details about the dues with names of entities were not available.  Going by the provision in the One-Time Restructuring plan, they have a 30-day curation period. Only when firms are not able to make payments in this period would they slip into the bad loan category, bankers said.

Bank officials said there was still a hope for Reliance and Future group deal to go through and lenders are trying to get some confir­mation from Reliance on the deal. If this fructifies, there is a chance of repayment.  Future Retail is locked in legal battles with US retail major Amazon and has already become a non-performing asset NPA in the current quarter.  

Future Retail CEO Sadashiv Nayak resigned seven months after appointment