The lenders to cash-strapped Future Retail (FRL) are set to hold a meeting over the next few days to decide on the next course of action amid litigation-related delays in closing the deal with Reliance Industries (RIL), banking sources told CNBC-TV18.

According to the sources, the lenders are in a fix over the delays and weighing all options. Debt recast under the Reserve Bank of India's (RBI) June 2019 circular, asset sale under SARFAESI, IBC are among the options on the table.

The company is in talks to recast its debt but hasn't come up with a concrete plan yet, said the sources, who did not want to be named.

The lenders are of the view that the deal with RIL is the best option for recovery of dues, however, worries about delays remain. They are looking to take a final decision based on legal advice.

Banks had declared Future Retail as a non-performing asset (NPA). The company had defaulted on Rs 3500 crore repayment due at the end of December under One-Time Restructuring (OTR).

FRL has moved the Supreme Court against being classified as NPA by the lenders.

The company owes over Rs 17,000 crore debt to a consortium of banks including Bank of India, SBI, BoB, Axis Bank and others.

>>Also Read | Future Retail Q3 results: Net loss widens to Rs 1,063.4 cr; revenue up 86.8% to Rs 2,815.7 cr

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First Published:Feb 17, 2022 8:32 AM IST