McLeod Russel to sell tea gardens after withdrawal of insolvency plea by NARCL

Kolkata-based tea producer McLeod Russel has initiated the sale of its tea gardens following the withdrawal of an insolvency application by the National Asset Reconstruction Company (NARCL) before the National Company Law Tribunal (NCLT).NARCL, acting through its attorney India Debt Resolution Company, holds the majority of the company's debt, having been assigned loans originally held by HDFC Bank.Founded in 2004, McLeod Russel operates 33 tea gardens in India, with 31 in Assam and two in West Bengal, in addition to six gardens in Uganda.The company has already approved the execution of memoranda of understanding for the sale of three Assam-based tea estates Nya Gogra, Rupajuli and Boroi to facilitate the part payment of its debt. The firm is currently evaluating options for its capital structure, including the induction of an investor or the launch of a rights issue.