Tea producer McLeod Russel India Ltd and carbon products manufacturer Carbon Resources are still in negotiations for a one-time settlement of McLeod Russel’s debt with lenders. The talks are ongoing, and both companies have agreed to extend the timeline for an exclusive negotiation agreement as they continue to evaluate and reach a mutually acceptable mechanism.
The exclusive negotiation timeline expired on July 28, but discussions are still underway to address certain outstanding issues. Carbon Resources director Abhinav Jalan stated that they hope the agreement deadline will be extended. Similarly, a top official from McLeod Russel confirmed that the timeline will be extended as some matters still need to be resolved.
However, before finalizing the negotiation between the two companies, McLeod Russel stated that the response from banks regarding the one-time debt settlement is crucial. Officials from both companies anticipate that lenders will soon respond and aid in concluding the negotiations for the settlement deal.
The initial agreement between McLeod Russel and Carbon Resources was signed on January 21 but expired on March 31 due to differences over valuations. However, it was later revived and extended for an additional month until July 28.
Carbon Resources had previously made a non-binding offer of Rs 1,245 crore to McLeod Russel’s lenders to acquire a controlling stake in the tea company and settle its dues. As per the proposal, secured lenders would be paid in full, while unsecured ones would have to accept a 45% haircut. The Jalans, representing Carbon Resources, expressed their interest in taking over the company.
The ongoing negotiations and potential settlement between McLeod Russel and Carbon Resources remain an important development for all parties involved. Both companies are hopeful of reaching a mutually beneficial agreement, and the response from lenders is eagerly awaited to bring the negotiations to a conclusion.
