Ingen Capital's fresh resolution plan for Orchid Pharma rejected again

A resolution professional (RP) in Chennai has rejected US-based Ingen Capital Group LLC's fresh bid for bankrupt drug maker Orchid Pharma, over two months after the country's insolvency tribunal refused its similar plan earlier.

The RP said Ingen Capital didn't give any earnest money deposit and neither did it provide "essential details" on how is it going to arrange funds. Ingen Capital didn't even submit an expression of interest, said the RP.

Orchid, earlier in May, had said that potential investors wanted to see the provisional financials of the company for 2018-19, but the RP said that the statutory audit could not be completed before the end of the financial year. 

The RP refused to comment on the investors who have submitted the resolution plan. Earlier in a submission with the NCLT, related to the non-payment of upfront amount by Ingen Capital, the RP has said he had received e-mails from Divi's Laboratories Ltd, Gland Celsus Biochemicals Pvt Ltd and Fidelity Trading Corporation and oral enquiries from ART Capital (India) Pvt Ltd, Everstone Group, Aion Capital, Piramal Capital and Finquest Group expressing interest in proposing Resolution Plans.

Business Standard reported on May 11 that the National Company Law Appellate Tribunal (NCLAT) has directed the government to take action against Ingen Capital Group LLC, its managing director and other directors for not implementing a resolution plan for Chennai-based Orchid Pharma after its proposal was selected by the Committee of Creditors (CoC) and National Company Law Tribunal (NCLT) for implementation. 

NCLT annulled Ingen's resolution plan in February this year after finding out that it has not implemented the plan as approved by the committee of creditors. The RP, following NCLT's order, called for fresh resolution plans and has received three bids. The RP on Monday said that it has also received a fresh resolution plan from Ingen Capital.