McLeod Russel India Limited (NSEI:MCLEODRUSS) on July 10, 2023 said its board of directors has approved the execution of an exclusivity agreement with Carbon Resources Private Limited to exclusively negotiate and evaluate a mutually agreeable mechanism for selling `identified' tea gardens. The funds which the Khaitans-led McLeod is planning to get from the proposed sale of gardens are to be used for the much-needed "one-time settlement " of its debt to lenders. FE on June 23 reported that Jalans-owned Carbon Resources is planning to buy 15 tea estates from McLeod for around INR 7,500 million as talks between the two companies have resumed.

"This time Carbon is planning to sign a binding deal with the McLeod within July 28 for acquiring the tea gardens," sources close to the development said on July 10, 2023. In a stock exchange filing, the tea maker said its board approved the execution of the exclusivity agreement with Kolkata-based Carbon to discuss, negotiate and evaluate a mutually agreeable mechanism for monetisation of identified assets of the company for a one-time settlement of the debt to its identified lenders, pursuant to a debt resolution process to be undertaken by the lenders as per the Reserve Bank of India's prudential framework for Resolution of Stressed Assets. "This exclusivity arrangement on the proposed asset sale is till July 28, 2023 is in furtherance to and on terms similar to the exclusivity agreement which was earlier approved by the board of directors and executed by the company at its meeting held on January 21, 2023, which had expired on March 31, 2023," it added.

The company's debt stands at around INR 17,000 million. Under the previous pact too, Carbon had offered to pay around INR 7,500 million for acquiring 15 tea estates. McLeod has 33 tea estates which produce over 40 million kgs of the brew.