McLeod-Carbon extends settlement negotiations till July 28

Debt-laden tea maker McLeod Russel on Monday said its board has extended the agreement with Carbon Resources until July 28 to negotiate and evaluate a mutually agreeable mechanism to offer a "one-time settlement" of its debt with the lenders. The first agreement was signed on January 21 that expired on March 31, the company said.

With this extension, the Kolkata-based carbon products maker will be able to continue negotiations with McLeod Russel, which had faced differences over valuation.

"The board of directors of McLeod Russel at its meeting considered and approved the extension of an exclusivity agreement with Carbon Resources till July 28, to exclusively discuss, negotiate and evaluate a mutually agreeable mechanism for the company to offer a proposed one-time settlement of the debt owed by the company to its identified lenders, the company said in a stock exchange filing.

The agreement expresses the parties' interests in continuing exclusive discussions in the matter and does not create any legally binding obligation on any party," the bulk tea producer said. Carbon Resources had earlier made a non-binding offer to McLeod Russel's lenders to acquire a controlling stake and settle its dues.