Tea company McLeod Russel moves to settle debts as promoters reduce stake

Most lenders have agree that debt restructuring is right choice and not auction under insolvency for India's largest bulk tea producer

An unexpected buoyancy in tea prices, following crop loss because of the nationwide lockdown, has turned out to be a boon for McLeod Russel India, the country’s largest bulk tea producer, with a majority of lenders achieving con­sensus on debt resolution. According to sources, most of the lenders have reached a consensus that debt restructuring is the right choice and not an auction under the insolvency law. The resolution proposal before the len­d­ers includes a combination of sale of tea gardens, fund infusion by promoter/investor, and restr­ucturing of balance debt.

McLeod’s debt is around Rs 2,000 crore. 

“Le­n­ders have realised that restructuring