Mcleod Russel Approves Debt Settlement, MD Re-appointment & Asset Disposal
Mcleod Russel accepted a ₹150 crore One-Time Settlement (OTS) from JCF ARC, payable by June 30, 2027. Mr. Aditya Khaitan was re-appointed as MD for three years from May 17, 2026. The company also signed an MoU to sell Mathura Tea Estates for ₹34.19 crore, with completion expected by July 31, 2026.
The One-Time Settlement and disposal of a business unit directly impact the company's financial structure, debt levels, and operational footprint, which are material events for stakeholders.
The company has taken significant steps towards debt reduction through an OTS and asset disposal, alongside the reappointment of its Managing Director, indicating positive progress in financial and operational management.
Mcleod Russel India Limited's Board of Directors, in a meeting held on May 15, 2026, approved several key decisions. The board accepted a One-Time Settlement (OTS) sanction from J.C. Flowers Asset Reconstruction Private Limited (JCF ARC) for outstanding dues. The settlement value is ₹150 crore, payable in tranches by June 30, 2027. JCF ARC represents approximately 20.58% of the total institutional loan as of December 31, 2025. This follows a previous sanction from National Asset Reconstruction Company Ltd (NARCL) representing about 75.02% for debt restructuring.
Furthermore, the Board approved the re-appointment of Mr. Aditya Khaitan as Managing Director for a further period of three years, effective May 17, 2026. This re-appointment is subject to member approval and other necessary authorities. Mr. Khaitan, with extensive experience in the tea industry and corporate restructuring, has been serving as MD since 2005.
In addition, the company approved the execution of a Memorandum of Understanding (MoU) for the proposed disposal of assets of its Mathura Tea Estates. This disposal is part of the debt restructuring plan with NARCL and is subject to due diligence and necessary approvals. The MoU was entered into on May 15, 2026, with a prospective buyer, Mr. Jayanta Kumar Sanyal, for a consideration of ₹34.19 crore, subject to adjustments and applicable GST. The expected completion of the sale is by July 31, 2026, pending necessary approvals, including shareholder approval as per Regulation 37A of SEBI LODR. The Mathura Tea Estates contributed 3.00% of the company's total turnover in the previous financial year (2024-25). The Board meeting commenced at 12:30 PM and concluded at 03:50 PM on May 15, 2026.
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