McLeod Russel lenders to discuss Carbon Resources offer

Kolkata: Lenders of McLeod Russel India Ltd (MRIL) will meet on Thursday to discuss the takeover bid of the debt-laden tea company by city-based Carbon Resources (CR), people aware of the development said.

Carbon Resources has sent a non-binding offer to State Bank of India, Punjab National Bank, UCO Bank and ICICI Bank, promising an upfront payment of ₹1,250 crore to creditors to pick up 5% stake in McLeod Russel.

As per the lucrative proposal, secured creditors will recover 100% of their exposure while unsecured creditors will get 55% of their exposure.

The total exposure of unsecured creditors in McLeod Russel is ₹1,100 crore, while that of secured creditors is ₹600 crore, people cited above said.

The tea producer had defaulted on the repayment of principal and interest to its lenders. When contacted, a director of MRIL said the proposal was sent to the lenders and the company is "not aware of it as of now". "The decision cannot be taken in one meeting," said the person who requested not to be named. "There is a process. Let us see what happens and what course of action the lenders take."