In a stock exchange disclosure on Monday, Vistra ITCL said it had sold over 56 lakh shares of the tea company in the open market late last week.
Promoter holding in McLeod Russel dipped below 35% as financial creditors continue to sell invoked shares in the open market. Promoter holding in the debt-laden tea company has fallen by more than 7% in the June quarter this financial year.
According to a latest stock exchange filing by McLeod Russel, promoter holding in the company stood at 34.75% as on June 28. Promoter holding in the company was 42.71% at the end of March quarter last financial year.
In a stock exchange disclosure on Monday, Vistra ITCL said it had sold over 56 lakh shares of the tea company in the open market late last week. It had earlier invoked 38 lakh equity shares of the company on June 21 and 27 in the capacity of a debenture trustee and security trustee against NCD and term loan facilities availed by borrower firms — Babcock Borsing, Williamson Financial Services and Williamson Magor & Company. Vistra ITCL is the trustee for joint lenders IL&FS Financial Services, IL&FS Infrastructure Debt Fund and Aditya Birla Finance.
The tea plantation company has already sold 19 of 48 tea estates in Assam over the last few years in order to pare its massive debt burden. The company’s auditor Deloitte Haskins & Sells LLP has said that its ability to continue as a going concern would solely depend on the acceptance of the refinancing proposal by its lenders, which is not wholly within the control of the company. Notably, the Williamson Magor Group company is in talks with lenders for refinancing its loans.