The development comes after another such case emerged this week, as the founder of
Ltd. repays equity-backed debt after a stock market rout causes a breach of debt terms. The coronavirus emergency triggered record declines in risk assets around the world in recent weeks ahead of Tuesday’s rallies, and Indian stocks were no exception. This put pressure on tycoons who had used equity-backed debt to grow their businesses over the years.
A spokesperson for Future Group declined to comment. The Biyani family is in talks with their creditors to resolve the issue. They are considering selling stakes in the companies to repay their debt in exchange for forbearance from creditors, who have the option to seize the shares instead, the people said, asking not to be identified because the the matter is private.