One of India’s leading retail conglomerates, Futures Retail is having a major crisis on its hands😟.
The Kishore Biyani controlled group has defaulted😔 on Rs. 100-crore ($14-million) repayment on its $500-million foreign currency bonds.
This fact has been disclosed by ☝️the rating agency, Standard & Poor’s (S&P).
More worries ahead
At present, Future Retail credit rating is a lowly ‘CCC-’.
According to S&P, Future Retail may face more liquidity pressure in the coming month🗓️.
This is due to the lower cash generation from its operations and delays in getting credit from banks🏦.
S&P has further warned that it could downgrade⤵️ Futures Retail’s rating to ‘Default’ if it feels that the company is unlikely to repay in the 30-day grace period.
Future has “its fingers crossed”
Despite being in this difficult situation, Future Group has expressed confidence over making the stipulated payment within the time limit.
It expects to secure funding💰 from banks or from alternate sources including the sale of some of its assets🏢.
It is also thinking of reorganising its equity structure to get a potential funds infusion from a strategic investor🤵🏻.
The Ambani factor
As per reports, Future group is in talks with Mukesh Ambani😎 controlled Reliance Retail for a merger.
However, nothing concrete has come out on that🙁 till this point of time.