Orchid Chemicals surges on approval of CDR package

The company will proceed with divestment and transfer of its API business along with the manufacturing plants and associated research and development facility, to repay part of the Rs 3,457 crore debt.

Orchid Chemicals and Pharmaceuticals is locked upper circuit of 10% at Rs 53.60 on the NSE after the company said Corporate Debt Restructuring (CDR) panel approved the debt restructuring proposal.

The board meeting held on March 14, 2014, has accepted the Letter of Approval (LOA) dated March 10, 2014 issued by Corporate Debt Restructuring Empowered Group (CDR EG) approving the CDR proposal submitted by the company, Orchid Chemicals said in a statement.

According to the CDR plan, the company will proceed with divestment and transfer of its API business along with the manufacturing plants at Aurangabad and associated research and development facility at Chennai, to repay part of the Rs 3,457 crore debt.

The company should repay a portion of the debt—Rs 681 core, from the sale proceeds and the balance Rs 2,866 crore should be restructured as pert the terms approved by the CDR plan.

The restructured debt together with funded loans would have to be repaid over a period of 8 years starting from April 2015 subject to regulatory approvals, it added.

At 1025 hours, a combined around 363,000 shares changed hands and there are pending buy orders for 601,000 shares on the NSE and BSE.