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McLeod Russel
The National Company Law Appellate Tribunal (NCLAT) has set aside the insolvency proceedings against leading bulk tea producer McLeod Russel following a settlement between the promoter and IL&FS Infrastructure Debt Fund. A supplementary affidavit was filed before NCLAT by the appellant (Aditya Khaitan), whereby an agreement between the parties dated May 5, 2023 was brought on record, The financial creditors also informed the appellate tribunal they already settled the matter with the promoter Khaitans and there are no issues between the parties. Following this, a two-member NCLAT bench closed the Corporate Insolvency Resolution Process (CIRP) initiated by the Kolkata bench of the National Company Law Tribunal (NCLT) on February 10, 2023. "In view the aforesaid, settlement agreement is taken on record, we close CIRP initiated by order dated 10.02.2023. Order dated 10.02.2023 is set aside," said NCLAT order, which was uploaded on the website on Tuesday evening. During the ...
Bulk tea major McLeod Russel India Ltd and IL&FS are currently engaged in negotiations towards an out-of-court settlement, which is expected to be reached within the next two weeks. The Brij Mohan Khaitan group company is attempting to avoid insolvency through an out-of-court settlement. IL&FS Infra Asset Management is an asset management company which manages IL&FS Infrastructure Debt Fund and IIDF is a financial creditor of McLeod. IIDF applied under a provision of the Insolvency and Bankruptcy Code against McLeod Russel India Ltd with the National Company Law Tribunal, Kolkata Bench. This application has been admitted by the NCLT. "Our focus remains on reaching a successful out-of-court settlement, and we expect to have an arrangement in place within the next two weeks," a senior company official told PTI. The official, however, refused to disclose the details of the negotiations. In the midst of a corporate insolvency resolution process (CIRP), McLeod cannot proceed ...
As part of the restructuring with secured lenders, debt-laden McLeod Russel India Ltd is in the process of negotiating with "multiple investors" to monetise assets and infuse fresh capital, but these talks are still in the fluid stages and nothing has been finalised, an official with the bulk tea major said. The final third credit rating of the company, which was delayed due to the Covid pandemic, is likely to be submitted by January 10, the official said. The BM Khaitan family, the existing promoters of McLeod Russel, however, still remain hopeful of retaining the management control of the company that produces 73 million kg of tea from a few dozen of gardens mostly in Assam and also in Africa and Vietnam. "We are holding talks with several investors to monetise assets and infusion of fresh capital as part of the ongoing debt restructuring. Nothing has been finalised yet. Once finalised, the plan will be put before the board of directors and then we will be able to discuss the ...
Carbon Resources, which has recently submitted a plan to the lenders of debt-laden McLeod Russel in a bid to acquire a controlling stake in the stressed tea major, is pinning hope on its non-binding offer, a company official said on Sunday. The carbon product manufacturer had picked up a 5.03 per cent stake in McLeod Russel in September and made the Rs 1,245-crore offer for the resolution of debt of the bulk tea producer. "Bankers held a meeting with us on October 1, post our non-binding offer sent to them in September. They have asked for a detailed plan for which we have sought some data. However, bankers are yet to share that. We are waiting for their response and are hopeful about our plan," Carbon Resources finance head Mahendra Sharma told PTI. He also said the company is optimistic after the meeting with the bankers, as lenders asked for a detailed "rehabilitation" proposal for 'ailing' McLeod Russel. His comment came days after the BM Khaitan family, the existing promoters