Financial creditors of Orchid Pharma likely to see larger haircut

The lenders of Orchid Pharma may see a larger haircut if the second attempt to arrive at a  resolution plan goes through, as the highest bidder Dhanuka Laboratories has quoted a total of around Rs 610 crore. This is compared to the Rs 1,490 crore quoted by Ingen Cap ital in the first attempt of the process.

A total of 24 financial creditors have an accepted claim of around Rs 3,390 crore from Orchid Pharma. Of these, eight financial creditors including Bank of India, Punjab National Bank, Canara Bank, Indian Overseas Bank, IDBI Bank, Kotak Mahindra Bank and Serum Institute of India Pvt Ltd voted against the resolution plan of Dhanuka Laboratories. 

According to sources close to the resolution process, the value mentioned in the resolution plan of Dhanuka is around Rs 610 crore. One of the bankers who have voted against the resolution plan said that the quote is below the liquidation value. However, the plan initially received 67.07 per cent votes in its favour during the period scheduled for voting by the lenders. Before the end of the voting period, one of the CoC members – Punjab National Bank (International) – has sent an email seeking to change its e-voting to dissenting. Once the change is considered, the voting for the resolution plan would be 65.53 per cent, while it would require 66 per cent of the CoC members to vote in favour of the plan to be approved.