Resignation of two independent directors of debt-ridden Future Enterprises
Debt-ridden Future Enterprises Ltd (FEL) said on Monday that two independent directors – Anand Chndrasekaran and Malini Chopra – had resigned from the company’s board.
Both cited an increased workload among the reasons for their resignation, which is effective from Monday, the firm said in a regulatory filing.
The development comes days after FEL defaulted on a payment of Rs 2,835.65 crore to various banks and lenders.
Citing the reasons, Chndrasekaran said it was “due to the increased workload in his recent role” and added that he “would not be able to devote time to performing my responsibilities as an independent director of the company”.
Chopra said she made the decision “due to the heavy workload at my other professional undertakings and my inability to devote reasonable time and effort to the performance of my duties to Future Enterprises Ltd as ‘independent director’.
Several Future Group companies, including FEL, have entered into agreements with their respective lenders pursuant to an RBI circular dated August 6, 2020, in which a COVID stress resolution framework was announced.
The group’s lead company, Future Retail Ltd, also said on Friday that it had missed the due date for repayment of Rs 5,322.32 crore to lenders due to the ongoing litigation with major e-commerce Amazon and other related issues.
FEL is part of the Rs 24,713 crore deal announced by Future Group in August 2020 under which it is to sell 19 companies operating in the retail, wholesale, logistics and warehousing at Reliance Retail Ventures Ltd (RRVL).
The 19 companies would be combined into a single entity – FEL – and then transferred to RRVL.
The future group companies will hold meetings of their respective shareholders and creditors between April 20 and April 23, 2022 to seek their approval for the Rs 24,713 crore deal.
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