Future Lifestyle defaults on NCD payments

New Delhi: 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 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.