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NCLT orders initiating insolvency proceedings against Orchid Pharma

Orchid Pharma may appeal against the insolvency proceedings initiated against it

BS Reporter 

NCLT orders insolvency proceedings
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The (NCLT)  has issued an order to appoint an Interim Resolution Professional to take charge of the management of Chennai-based pharmaceutical firm Ltd.

may appeal against the initiated against it after a petition by one of its lenders, Lakshmi Vilas Bank, was accepted by the Orchid had taken a Rs 50 crore loan from Lakshmi Vilas Bank, backed by real-estate assets, which it failed to repay, according to the court order.

The company is exploring suitable legal recourse, including an appeal before the National Company Law Appellate Tribunal, it said in a stock exchange filing.

Orchid Pharma, once a leader in injectables and some of the Active Pharmaceutical Ingredients (API) manufacturing, has been facing a financial crisis with various lenders and investors approaching various legal forums for remedy.

First Published: Wed, August 23 2017. 10:18 IST