McLeod Russel India, the country’s largest bulk tea producer, expects its debt-restructuring plan to be finalised in the next few months.
McLeod owes banks about Rs 1,800 crore and with unpaid interest, the total amount is said to be around Rs 2,300 crore. Bankers are fully in support of the company as it engages “very consciously” with them for a restructuring plan, said Aditya Khaitan, McLeod Russel chairman and managing director, while responding to shareholders’ questions at the firm’s annual general meeting.
“Hopefully, in the next few months, we will be able to finalise the restructuring programme with the bankers and with that the company should be able to manage its debt position,” said Khaitan.The company had last month in a stock exchange filing said that all banking lenders had signed/executed an Inter Creditor Agreement (ICA) to provide for ground rules for finalization and implementation of resolution plan.
McLeod had been in discussion with bankers for debt resolution in terms of the Reserve Bank of India’s (RBI’s) June 7, 2019 circular for a while. The process was restarted by bankers after insolvency proceedings initiated by a financial creditor was withdrawn in September.In the notes to September quarter results, the company had said that the Techno Economic Viability (TEV) study and valuation done are being vetted again and possible credit rating of the parent will then be obtained in due course of time.
