Future Enterprises defaults debt repayment

Shares of Future Enterprises (FEL) hit 5% lower circuit after it defaulted on debt repayment towards the commercial paper. In a statement to the exchanges, the company said it defaulted on Rs 90 crore commercial paper on September 14, 2020.
The delay in reporting, the company said, is due to efforts being made by it to make payment by mobilising certain funds and then submit report of having repaid with delay.
FEL develops, owns and leases retail infrastructure for the Future Group. It handles backend operations of the retail business of the Future Group.

On August 29, 2020, the Future Group had announced to sell the retail and wholesale business to Reliance Retail.
FEL will subsequently sell by way of a slump sale the retail and wholesale business that includes key formats such as Big Bazaar, fbb, Foodhall, Easyday, Nilgiris, Central and Brand Factory to Reliance Retail and Fashion Lifestyle (RRFLL), a wholly-owned subsidiary of Reliance Retail Ventures (RRVL).
Earlier, it had announced to merge key group companies including Future Retail, Future Lifestyle Fashions, Future Consumer, Future Supply Chains and Future Market Networks into FEL.

Last week, FEL reported a consolidated net loss of Rs 322.92 crore for the quarter ended on June 30, 2020. It had posted a consolidated loss of Rs 8.59 crore in the April-June quarter a year ago.
Its revenue from operations was down 87.31% to Rs 179.39 crore during the quarter under review as against Rs 1,414.73 crore of the corresponding quarter last fiscal.

COVID 19 pandemic and consequent lockdown imposed throughout the country has had a significant adverse impact on the business operations and the financial results of the company for the quarter ended June 30, 2020.
Its total expenses were at Rs 639.27 crore as against Rs 1,440.93 crore, down 55.63%.

Shares of Future Enterprises (FEL) hit 5% lower circuit after it defaulted on debt repayment towards the commercial paper. In a statement to the exchanges, the company said it defaulted on Rs 90 crore commercial paper on September 14, 2020.
The delay in reporting, the company said, is due to efforts being made by it to make payment by mobilising certain funds and then submit report of having repaid with delay.
FEL develops, owns and leases retail infrastructure for the Future Group. It handles backend operations of the retail business of the Future Group.

On August 29, 2020, the Future Group had announced to sell the retail and wholesale business to Reliance Retail.
FEL will subsequently sell by way of a slump sale the retail and wholesale business that includes key formats such as Big Bazaar, fbb, Foodhall, Easyday, Nilgiris, Central and Brand Factory to Reliance Retail and Fashion Lifestyle (RRFLL), a wholly-owned subsidiary of Reliance Retail Ventures (RRVL).
Earlier, it had announced to merge key group companies including Future Retail, Future Lifestyle Fashions, Future Consumer, Future Supply Chains and Future Market Networks into FEL.

Last week, FEL reported a consolidated net loss of Rs 322.92 crore for the quarter ended on June 30, 2020. It had posted a consolidated loss of Rs 8.59 crore in the April-June quarter a year ago.
Its revenue from operations was down 87.31% to Rs 179.39 crore during the quarter under review as against Rs 1,414.73 crore of the corresponding quarter last fiscal.
COVID 19 pandemic and consequent lockdown imposed throughout the country has had a significant adverse impact on the business operations and the financial results of the company for the quarter ended June 30, 2020.
Its total expenses were at Rs 639.27 crore as against Rs 1,440.93 crore, down 55.63%.

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