Lenders allow Biyani's Future Retail to pay interest on foreign bonds

For many restructured loan accounts like FRL, banks are in control of fund movement and there is continuous assessment of financial position

Lenders to Kishore-Biyani controlled Future Retail Ltd (FRL) have permitted the company to make interest payments of over Rs 100 crore (about $ 14 million) on the foreign currency denominated bonds. It has already missed repayment due last month and the 30-grace period ends early next week.  

The company had approached banks to allow interest payment. Lenders reviewed the cash flows and decided to give green signal. It is making interest payments to domestic lenders. Though, it is default on principle, said a senior bank executive.

For many restructured loan accounts like FRL, banks are in control of fund movement