Hotline: 1800 102 2007
Hotline: 1800 102 2007
May, 15 2018

Orchid Pharma may undergo liquidation as lenders reject resolution Plan

It is also in the second list of 28 companies that the Reserve Bank of India had mandated banks to refer to the bankruptcy court by the end of December 2017 if lenders were unable restructure the respective loans by mid-December.

Orchid Pharma may undergo liquidation as lenders reject resolution Plan

The troubled drug-maker Orchid Pharma is suffering resistance from its lenders who have rejected the resolution plan of the bankrupt company, a decision that could push toward liquidation. “The resolution professional has conducted three rounds of bidding.

However, lenders found bids in all the rounds unacceptable,” two senior persons who did not want to be named said. Time was running out for resolving this outstanding debt: The 270- day deadline before which a resolution has to be in place ended on May 14.

Orchid Pharma was referred to the bankruptcy court by Lakshmi Vilas Bank after it failed to pay about Rs 3,500 crore to lenders. It is also in the second list of 28 companies that the Reserve Bank of India had mandated banks to refer to the bankruptcy court by the end of December 2017 if lenders were unable to restructure the respective loans by mid-December.

In the third round, the RP received four applications, of which three were legally compliant. At an e-voting held on May 12, the majority of the lenders rejected the offers they received and no resolution plan was put in place by May 14 - the last day of submitting a plan to the bankruptcy court. It is yet not clear whether the RP will seek additional time from the bankruptcy court to revive the company with a resolution plan.

Orchid Pharma has informed the stock exchange that as “the proposed resolution plan that was put for voting did not get requisite approval from the Committee of creditors (CoC), the CoC, through the RP has not submitted a resolution plan with Hon’ble National Company Law Tribunal.”

Union Quimico Farmacéutica, Ingen Capital, and Fidelity Trading Corporation were the three bidders in the second round of auctions held in April but their bids were rejected since two of them - Ingen Capital and Fidelity Trading Corporation - were found to be ineligible as they were not compliant with Section 29A of the insolvency code. The offer from Union Quimico Farmacéutica was too low even though it was eligible.

sharebtn
Comment
user
email
mobile
address
star
Related opportunities
  • About Us: LA Sovereign Bicycles Pvt Ltd. was established in 2006..
    Locations looking for expansion New Delhi
    Establishment year 2006
    Franchising Launch Date 2015
    Investment size Rs. 20lac - 30lac
    Space required NA
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater New Delhi New Delhi
  • Others Food Service
    About Us: The Fresh Meat Market is an online platform as..
    Locations looking for expansion Uttar pradesh
    Establishment year 2017
    Franchising Launch Date 2018
    Investment size Rs. 2lac - 5lac
    Space required 100
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Noida Uttar pradesh
  • Kids & Children Clothing
    About Us: LAXONS BABY WORLD is a complete and exclusive BABY..
    Locations looking for expansion Delhi
    Establishment year 2011
    Franchising Launch Date 2019
    Investment size Rs. 30lac - 50lac
    Space required 1000
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater New delhi Delhi
  • Bakery & Confectionary
    About Us: The basic idea was to start a small wagon..
    Locations looking for expansion Gujarat
    Establishment year 2017
    Franchising Launch Date 2017
    Investment size Rs. 2lac - 5lac
    Space required 300
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Ahmedabad Gujarat
Insta-Subscribe to
Entrepreneur
Magazine
sme-80x109
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
email
mobile
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities