NCLT paves way for bankruptcy proceedings against McLeod Russel Khaitan Family Company
Once the world’s largest tea producer and 152-year-old Indian company, McLeod Russell is in trouble. The situation is that now this company has reached the verge of selling. In fact, the Delhi Bench of the National Company Law Company Tribunal (NCLT) has approved insolvency proceedings against MacLeo Russell. McLeod Russell is the company of the Khaitan family, a well-known business house of the country.
Tea maker McLeod Russell owes more than Rs 100 crore to Techno Electric and Engineering Company. But the company is defaulting in payment. For this reason, Techno Engineering had applied before the NCLT to initiate insolvency proceedings against McLeod under the Insolvency and Bankruptcy Code 2016. Now NCLT has approved this application. McLeod has given this information to the stock exchange. Apart from this, the NCLT has also appointed an interim resolution professional for this insolvency process.
Debt of more than 4 thousand crore rupees on the company: India’s largest tea maker McLeod Russell has a debt of more than 4 thousand crores of banks. This also includes the amount of interest. The company had also prepared a resolution plan to get rid of this debt. But no consensus has been reached on this. This company was established in 1869. At present, about 73 thousand people work in this company.
The company had 48 T-estates: McLeod Russell once owned 48 T-estates all over the world, out of which 31 T-estates were in Assam alone. At the same time, two T-estates were in West Bengal. The company’s other T-estates were located in Opium and Vietnam. The company produces around 73 million kilograms of tea every year. Presently the company has T-Estate banks spread over 27,360 kms.
The Khaitan family has less than 10 percent stake in the companyMcLeod Russell is the family company of Braj Mohan Khaitan. However, the Khaitan family now has less than 10 per cent stake in the company. The reason for this is that the Khaitan family had pledged their share of shares with the borrowers, which have been given to them to pay off the debt. A year ago, the Khaitan family had a 25.82 per cent stake in the company.
Sell 17 T-estates in a year: McLeod Russell has sold 17 of its T-estates between March 31, 2019 and March 31, 2020, to pay off debt. These tea estates have been sold for Rs 764 crores. Due to this, McLeod has also lost the title of the world’s largest tea producer.
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