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Tea producer McLeod Russel submits new debt resolution plan

Business Standard  

McLeod Russel India has submitted a fresh plan for debt resolution to lenders. It had earlier offered a one-time payment (OTS) of INR 1,030 crore to lenders to settle the outstanding against the loans including interest. It also had a pact with electrode paste maker Carbon Resources for selling some tea gardens to facilitate the payment. However, the validity period of the OTS offer expired on September 30, 2023, in the absence of a consensus among lenders. McLeod’s principal debt with the banks stands at INR 1,700 crore.McLeod’s fresh resolution plan, instead of an OTS, entails restructuring its debt and a staggered sale of assets in the wake of weak market conditions.The bulk tea producer reported a net loss of INR 81.68 crore on a consolidated basis in the October-December quarter (Q3FY24) compared to a net loss of INR 70.79 crore in the year-ago period. Revenue from operations stood at INR 348.62 crore in Q3FY24, down by 28.64 % compared to INR 488.59 crore in the year-ago period.