Kolkata, Sep 21 (PTI) Lenders may discuss the debt resolution proposal on McLeod Russel India Ltd by Carbon Resources on Thursday involving Rs 1,245 crore, sources close to the development said.

Expressing its intention to acquire the debt-laden tea major, the Kolkata-based electrode paste maker took over a 5.03 per cent stake from the open market at an average price of Rs 28.35 per share.

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"The lenders are likely to meet on Thursday to discuss the offer of Carbon Resources," a source told PTI.

Carbon Resources has sent a non-binding letter of intent to the lenders of Mcleod Russel including SBI to acquire a controlling stake in the company, currently under the control of the stressed Williamson Magor group.

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Carbon Resources had offered to infuse upfront equity of Rs 300 crore and a loan offer of Rs 945 crore to resolve McLeod's outstanding debt.

Sources said the offer proposes to pay the secured lenders in full, while unsecured lenders would be offered 55 per cent of their dues.

The total debt of the company is around Rs 2000 crore.

Mahendra Sharma, finance head of Carbon Resources, said things will get clarity soon and the company is waiting for a positive response from the bankers.

Due diligence can be undertaken and the company had sought a 60-day window.

Sources in Carbon Resources said if they become successful in acquiring McLeod, promoted by Khaitans, it will run the company by professionals, rejecting apprehension about their ability to run a major tea firm.

The lenders are expected to weigh the offer of existing promoters also in the ongoing debt restructuring process.

The Khaitans have not yet commented on their commitment to infusing fresh capital into the company as part of their offer in the debt restructuring plan.

"The process of rating of the company is presently underway which is the precursor to the debt restructuring planning," a source in the Khaitan family said.

The lenders are SBI, Indian Bank, RBL Bank, Axis Bank, HDFC Bank, ICICI Bank, UCO Bank, Punjab National Bank, Yes Bank and IndusInd Bank.

Carbon Resources has four manufacturing locations. It operates an electrode paste plant with a production capacity of 60,000 MT/year at its Giridih plant in Jharkhand. It also produces tamping paste used widely in the Ferro Alloys industry and allied industries.

The company has clocked revenues of Rs 2500 crore and net profit was Rs 270 crore in the last fiscal.

The Khaitans currently hold a little over 6.2 per cent stake in McLeod Russel. The family has lost control of dry cell battery major Eveready Industries to the Burman family, promoter FMCG maker Dabur India.

(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)