Tea major McLeod Russel India Ltd and IL&FS are currently in talks towards an out-of-court settlement, which is expected to be reached within the next two weeks.
The Brijmohan Khaitan group company is trying to avoid bankruptcy through an out-of-court settlement.
IL&FS Infra Asset Management is an asset management company that manages IL&FS Infrastructure Debt Fund and is a financial creditor to IIDF McLeod.
IIDF applied under a provision of the Insolvency and Bankruptcy Code McLeod Russell India Ltd. with the National Company Law Tribunal, Kolkata Bench. This application has been accepted by the NCLT.
“Our focus is on reaching a successful out-of-court settlement and we hope to reach an arrangement in the next two weeks,” a senior company official told PTI.
However, the official refused to divulge details of the conversation.
In the midst of the Corporate Insolvency Resolution Process (CIRP), McLeod cannot proceed with a one-time settlement with bankers in association with Carbon Resources as a potential strategic partner.
Comments from IIDF were not immediately available.
IIDF, a financial creditor of McLeod, filed a petition against the company for default in payment 347.4 crore as on 12th November, 2019, of which the principal amount is approx. 252.66 cr.
McLeod Russell was already exploring options for a one-time settlement of its debt to lenders with city-based Carbon Resources. 1,600 crores. Carbon Resources had earlier expressed interest in taking over the company along with McLeod lenders and settling the dues.
The group had lost a major company – Eveready Industries India Limited – to the Dabur family in the recent past.
The text of this story is published from a wire agency feed without any modification.
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