India’s Future Retail Processes Dollar Bond Interest Payment
(Bloomberg) -- Indebted Indian retailer Future Retail Ltd. has processed a dollar bond interest payment originally due Jan. 22. The company’s notes and shares surged on the news.
The interest payment “has been processed at our end,” a Future Group spokesperson said when asked about the issue by Bloomberg News.
The interest due was about $14 million on the 5.6% notes that mature in 2025, according to Bloomberg data. The price of the notes jumped 1.4 cents to a one-month high at 86.3 cents after the news, according to prices compiled by Bloomberg. The company’s Mumbai-listed shares rose 5.5% as of 1:10 p.m. in Mumbai on Friday, set for the biggest gain in a week.
The company had proposed last month to make the payment within a 30 day grace period. Future had also missed an interest payment on the same bonds last year before honoring that obligation later.
The company is embroiled in a protracted legal battle between tycooon Mukesh Ambani’s Reliance Industries and Future’s partner, Amazon.com. Amazon has called for a takeover by Reliance to be blocked. Meanwhile, a cash crunch at Future stemming from long-term competition from e-commerce firms has been exacerbated by the pandemic.
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