NCLT clears way for bankruptcy proceedings against tea maker McLeod Russel
image for illustrative purpose
Trouble mounts for McLeod Russel as National Company Law Tribunal (NCLT) paves way for bankruptcy proceedings against the tea grower after a financial creditor moved an application against the company claiming the company has defaulted on Rs 100 crore dues owed to it.
McLeod on Friday informed the bourses that NCLT Delhi admitted the application filed by Techno Electric & Engineering Company Limited against it under the Insolvency and Bankruptcy Code, 2016 (IBC). The insolvency court also appointed an interim Resolution Professional.
The tea manufacturer owes banks around Rs 4,000 crore including interest and was in the midst of a resolution plan but no clear understanding had been reached.
Meanwhile, the stake of the Khaitan family in the company had slumped to 10 per cent due to offloading of shares of pledged shares with lenders.
