Future Lifestyle Fashions defaults on NCD payments worth Rs 31 cr

Future Lifestyle Fashions on Monday reported default on payments for its non-convertible debentures (NCDs).

In a regulatory filing, the company said it has defaulted on "Payment of annual interest of Rs 30.93 crore for the period between 10 November 2019 to 09 November 2020."

The gross principal amount on which the default has occurred is Rs 350 crore, it added.

According to the company, due to uncertainty created by the COVID-19 pandemic and consequent lockdown and disruption, the revenue of the firm has been adversely impacted.

"The fashion retail business is more impacted due to drops in footfalls, de-growth of revenue, lack of disposable income and discretionary spending by the customer. Consequently, this pandemic had a significant impact on the business and the liquidity position of the Company," it added.

The company had requested the debenture holders to extend the date of payment of annual interest and principal up to January 2021, which has been agreed by two out of three debenture holders.

"However, one Debenture holder has not conveyed its consent to the request made by the Company and exercised put option on the NCDs for the value date on 09 November 2020.

"Considering the reasons cited hereinabove, the Company is unable to servicing of annual interest and repayment of principal (to the extent of exercise of put option by one Debenture holder) on the aforesaid NCDs, due and payable on 09 November, 2020," it said.