FRL lenders approve restructuring of debt

New Delhi: Lenders of the debt-ridden Future Retail Ltd have approved a plan to restructure the existing financial debt of the company under an RBI announced resolution framework for COVID-19 related stress.

The restructuring plan now would be forwarded for approval to an expert committee, formed by RBI under the chairmanship of K V Kamath, Future Retail Ltd (FRL) said in a late-night regulatory update on Saturday.

As part of the resolution plan, the debt raised through the non-convertible debentures issued by FRL is also part of the existing debt and is proposed to be restructured, it added.

The board of the company, which now expects to recover from the financial stress with the resolution timeframe, has also approved the restructuring plan in its meeting held on Saturday, it added.

"Board at its meeting held on April 17, 2021, has approved a resolution plan to restructure the existing secured financial debt from the bankers of the company as permitted under a resolution framework for COVID 19 related stress announced by the Reserve Bank of India," the ,filing said.

The said resolution plan, which remains subject to the approval of the expert committee, under the chairmanship of K V Kamath constituted by the RBI, has been approved by the lenders to the existing debt of the company, it added.