McLeod Russel gets board nod to debt settlement deal with Carbon Resources

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Tea major McLeod Russel India said its board has approved the execution of an exclusivity agreement with Carbon Resources Pvt Ltd to discuss a mutually agreeable mechanism to offer a proposed one-time settlement of debt to its identified lenders.

The company said in a filing that its board of directors has considered and approved the execution of an exclusivity agreement with Carbon Resources for a period of 60 days.

“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 filing said.

Carbon Resources had picked up 5 percent stake in the Kolkata-based tea manufacturer from the open market last September. The Khaitan group currently owns 6.25 percent in Mcleod Russel and the company's debt stands at over Rs 1,700 crore.

Jalans-owned Carbon Resources had earlier made a non-binding offer to McLeod Russel lenders showing interest to acquire a controlling stake and settlement of its dues.

The lenders to the company are ICICI Bank, State Bank of India, Indian Bank, RBL Bank, Axis Bank, HDFC Bank, UCO Bank, Punjab National Bank, Yes Bank and IndusInd Bank.

With inputs from PTI