Lenders to McLeod Russel India — the country’s largest bulk tea producer — are likely to move forward with the debt resolution process with the company out of the clutches of the corporate insolvency resolution process (CIRP).
Sources close to the development said barring a few banks, most had signed inter-creditor agreement (ICA). “The other banks are also on board now,” they said. There are about 10 banks in the consortium and a meeting is slated towards the end of the week.
Sources indicated that the techno-economic viability (TEV) study would have to be updated. In addition, the credit rating of the company would have to be obtained for implementation of the debt resolution plan recommended by SBI Capital Markets.
McLeod Russel owes banks about Rs. 1,800 crore with neglected interest, the sum would be near Rs. 2,300-2,400 crore. As a feature of the goal, banks would rebuild the obligation of Rs.1,800 crore. For the neglected interest, there could be another instrument. Advertisers will likewise need to implant value, a piece of which could emerge out of the offer of tea gardens.
McLeod had sold around 17 bequests between the year finishing 31 March 2019 and 31 March 2020 to pare obligation and acknowledged about Rs. 764 crore.
The measure was stopped after the National Company Law Tribunal (NCLT) conceded an application for indebtedness goal started by monetary leaser, Techno Electric and Engineering, on 6 August this year.
In any case, McLeod settled with Techno and the NCLT acknowledged an application for withdrawal under Section 12A on 3 September. The suspended directors and the organization were calmed from the grasp of CIRP and the IRP was released from his capacities.
One of the banks had moreover moved the NCLT. Be that as it may, the request was excused by the court as it became infructuous after the organization was conceded for CIRP on account of the Techno application, which was consequently removed.