 "tea producer McLeod Russel")
McLeod’s crop in India is about 45 million kg (mkg) across 31 estates in Assam and two in Dooars.
India’s largest bulk tea producer, McLeod Russel India, has reached an understanding with electrode paste maker Carbon Resources, owned by the Jalans, for sale of tea estates. The size of the deal pegged at Rs 700 crore would enable debt resolution with lenders.
In an exchange filing, the tea company from the Brij Mohan Khaitan stable, said that the board at a meeting on Friday considered and approved the execution of a binding term sheet with Carbon Resources to formalise the terms for sale of certain identified tea estates pursuant to a debt resolution process to be undertaken by the Lenders as per the Reserve Bank of India’s (RBI) Prudential Framework for Resolution of Stressed Assets dated June 7, 2019 for a one-time settlement of the debt owed by the company to its identified lenders.
McLeod’s crop in India is about 45 million kg (mkg) across 31 estates in Assam and two in Dooars.
The deal would give Carbon about 15 gardens capable of producing 17-18 mkg.
The gardens identified for sale were in Assam, McLeod sources said.
McLeod’s total production is about 69 mkg across India, Africa and Vietnam.
The proceeds would be used towards payment of a one-time settlement (OTS) of the debt owed by the company to its identified lenders. McLeod’s bank debt is believed to be in the region of Rs 1,600 crore.
First Published: Aug 04 2023 | 11:25 PM IST