Thinking of lush green tea plantations while sipping on your morning tea may be one of life's simple pleasures, but things have been unpleasant for the industry for a while. The insolvency proceedings against India's largest bulk producer of tea McLeod Russel blew the lid off woes that tea growers face, as business groups aren't prioritising support for plantations.
After opposing the insolvency process against McLeod, its promoters the Khaitans may reach an out of court settlement with IL&FS.
Brewing a new solution
Suspended after the firm was admitted for insolvency, Khaitans have reportedly opted to withdraw their plea which aimed to stop insolvency proceedings.
IL&FS Infra Asset Management had approached the National Company Law Tribunal against McLeod to recover dues worth Rs 350 crore.
The amount for the out of court settlement hasn't been revealed, but a Business Standard report among others, says that it makes up for the principal amount.
Salvaging growth of plantations
After NCLT initiated insolvency proceedings, the appellate tribunal NCLAT had told the interim resolution professional, recommended by IL&FS Infra Asset Management to work with existing company officials and the Khaitans, instead of forming a committee of creditors.
Reports also suggest that McLeod may get help from Carbon Resources to settle their dues with lenders.
