BackLenders approve Orchid Chemical’s ₹3,547 cr CDR plan
According to the CDR plan, the company will proceed with divestment and transfer of its API business along with the manufacturing plants and an attached research and development facility to repay part of the ₹3,457 cr debt
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Mumbai: A consortium of lenders led by State Bank of India has approved the corporate debt restructuring (CDR) plan of Orchid Chemicals and Pharmaceuticals Ltd’s, the drug maker informed stock exchanges on Friday.
According to the CDR plan, the company will proceed with divestment and transfer of its active pharma ingredients (API) business along with the manufacturing plants and an attached research and development facility located at Aurangabad, to repay part of the ₹ 3,457 crore debt.
The company had moved the CDR cell in June.
“The company should repay a portion of the debt— ₹ 681 core, from the sale proceeds and the balance ₹ 2,866 crore should be restructured as pert the terms approved by the CDR plan," the company informed.
“The CDR approval will facilitate the completion and transfer of the API business to Hospira and also will bring in the working capital availability from the sale proceeds besides deleveraging the debt profile," said Orchid’s chairman and managing director K Raghavendra Rao, in a statement to BSE.
Orchid has had a total debt of about $500 million as on June 2013.
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