McLeod Russel signs ICA with its banking lenders for debt resolution

Plan will have a mix of capital infusion by promoters and recast of balance debt. McLeod owes banks Rs 1,800 cr; with unpaid interest, the total is about Rs 2,300 cr

Banking lenders to McLeod Russel India have signed an inter creditor agreement (ICA) as part of debt resolution efforts.

Disclosing the signing of ICA  with its consortium of lenders, the company said in a stock exchange filing on Friday, the Reserve Bank of India (RBI) issued directions for ‘Prudential Framework for Resolution of Stressed Assets’ which came into immediate effect i.e. June 7, 2019.

Pursuant to the provisions, all the banking lenders have signed/executed an inter creditor agreement (ICA) to provide for ground rules for finalisation and implementation of resolution plan in respect of borrower/company, the notice read.

Sources said,