2 Williamson Magor firms in advanced talks to recast loans

Discussions between lenders and bankers over the debt restructuring of two Williamson Magor Group companies are at an advanced stage, Chairman Aditya Khaitan informed shareholders of group firm Eveready Industries India on Tuesday.

Faced with debt challenges at t he group level, Williamson Magor has been charting separate resolutions for its companies.

With a resolution plan coming into effect, these companies will be able to generate cash flows within the next few years and restructure payments to the holding company, which will be used to repay Eveready’s dues.

Eveready does not require debt restructuring, but it is understood that the group’s bulk tea producer, Mcleod Russel India, is in the final leg of talks with lenders for debt restructuring and propose capital infusion by an investor.

Mcleod has around ~2,000 crore of debt on its books. Mcnally Bharat Engineering Company, the group’s engineering, procurement, and construction firm, is also awaiting lenders’ approval for restructuring of its debt.

At Eveready’s annual general meeting, Khaitan said a promoter group-level restructuring was underway. Through this, the promoters of the company were exploring possibilities of a capital infusion into certain promoter group companies and monetisation of certain assets of the group.

This is aimed at addressing outstanding liabilities and obligations of group companies, including inter-corporate deposits (ICDS) and advances, and a potential liability related to corporate guarantees.