McLeod Russell, IL&FS Bankruptcy Settlement Likely in Two Weeks: Report

The Brij Mohan Khaitan group of companies is trying to avoid bankruptcy through an out-of-court settlement.

IL&FS Infra Asset Management is the asset management company that manages the IL&FS infrastructure debt fund, and IIDF is McLeod’s financial lender.

IIDF filed under the provisions of the Insolvency and Bankruptcy Code against McLeod Russel India Ltd in the National Companies Court, Kolkata Court. This application has been accepted by the NCLT.

“Our focus remains on reaching a successful out-of-court settlement and we expect an agreement to be reached within the next two weeks,” a senior company official told PTI.

However, the official refused to disclose the details of the negotiations.

In the midst of the corporate resolution process (CIRP), McLeod is unable to proceed with a one-time settlement with the bankers in cooperation with Carbon Resources as a possible strategic partner.

Comments from IIDF were not immediately available.

IIDF, McLeod’s financial lender, filed a lawsuit against the company for non-payment ₹347.4 crores as of November 12, 2019, of which the principal amount is about ₹252.66 crore

McLeod Russell had already explored options with the city’s Carbon Resources for a one-time settlement of his debt to creditors, which is estimated to be around ₹1600 crore Carbon Resources has previously expressed interest to McLeod’s creditors in acquiring the company and paying off debt.

In the recent past, the group lost a key company, Eveready Industries India Ltd. in favor of the Dabur family.

This story was published from a news agency news feed without text changes.