A group-level restructuring is underway, involving debt recasting, sale of assets and roping in of strategic investors, Khaitan told shareholders at McLeod Russel’s general body meeting held in Kolkata. The group is seeking to reduce debt at its companies. McLeod Russel has debt of around ₹1,700 crore. McNally Bharat and Eveready Industries are estimated to have debts of ₹1,500 crore and ₹700 crore, respectively.
“Group companies have already stopped lending to McNally for some time now. All the three WMG entities are looking at restructuring themselves independently,” he said.
While McLeod Russel, which deals in tea business, has been selling its estates to raise capital to service loans, engineering firm McNally Bharat has signed a deal with a consortium of investors led by Turbovent Industries for infusion of Rs 150 crore, subject to approval of a resolution plan outside the bankruptcy court. Meanwhile, Eveready Industries is in advanced talks with Duracell, owned by Warren Buffett’s Berkshire Hathaway, for a strategic sale of its battery and flashlight businesses.
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