Negotiation is still going on between tea producer McLeod Russel India Ltd and Carbon Resources for a one-time settlement of the former's debt with lenders, officials of both companies said on Sunday. The talks will take some more time to evaluate and agree on a mutually acceptable mechanism, and thus, the timeline for an exclusive negotiation agreement needs to be extended, they said.

 

The timeline of the exclusive negotiation expired on July 28.

 

"Discussions are still going on concerning certain issues, and we hope that the agreement deadline will be extended," Carbon Resources director Abhinav Jalan told PTI.

 

The timeline will be extended as certain issues remain to be sorted out, a top official of McLeod Russel said on condition of anonymity.

 

However, the tea producer stated that the response from banks on the one-time debt settlement is "crucial" before finalising the negotiation between the two companies.

 

Officials of both companies expected that lenders would soon respond to help the managements conclude the negotiation for the one-time settlement deal.

 

The first agreement between the two companies was signed on January 21 but expired on March 31 as there were "differences over valuations", the officials said.

 

However, it was later revived and extended for one month till July 28.

 

Carbon Resources had previously made a non-binding offer to McLeod Russel's lenders to acquire a controlling stake in the tea company and settle its dues.

 

 

The Kolkata-based carbon products manufacturer had sent a Rs 1,245-crore non-binding offer to lenders.

 

Secured lenders were supposed to be paid in full, while unsecured ones would have to take a 45 per cent haircut as Jalans of Carbon Resources were keen to take over the company.