Kolkata, Sep 19 (PTI) In a fresh blow to Williamson Magor Group, electrode paste maker Carbon Resources picked up a 5.03 per cent stake in tea planter McLeod Russel India Ltd and sought to settle its debt with bankers, officials said on Monday.

Carbon Resources wants to provide a resolution plan for the debt of the bulk tea producer with a Rs 1,245-crore offer, they said.

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The current debt level of McLeod Russel is around Rs 2,000 crore, a company official said.

"We have acquired a 5.03 per cent stake in McLeod Russel and have sent our letter to bankers, offering to infuse upfront equity (capital) worth Rs 300 crore and a debt of Rs 945 crore for a resolution for the company's outstanding debt.

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"We have already sent our legal team to take this forward and have sought a 60-day time from bankers to conduct due diligence," Mahendra Sharma, who heads the finance at Carbon Resources, told PTI.

Asked whether the company is looking to take over the tea planter, he said, "options remain open and we will have a clearer picture over the next few days".

McLeod Russel is promoted by the BM Khaitan family, and at the end of June, promoters owned a 6.25 per cent stake in the troubled bulk tea producer.

The stock exchange data, as on September 16, showed that Carbon Resources (P) Ltd purchased 4.95 million shares of McLeod Russel from the open market.

Sources in the Khaitan family said they were unaware of the sudden development, and are taking stock of the situation as the process of debt restructuring is underway.

McLeod Russel had already signed the Inter Creditor Agreement (ICA), and a rating agency evaluation process is going on.

The Khaitan family sources said, "non-tea entities have not been able to succeed in managing large tea companies so far, and McLeod has an employee base of 70,000".

Carbon Resources operates an electrode paste plant with a production capacity of 60,000 MT per year in Giridih. It also produces tamping paste used widely in the ferroalloy and allied industries.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)