Big haircut for lenders as NCLT okays resolution plan for Orchid Pharma

Banks to get around Rs 10 billion out of the total debt of over Rs 32 billion;

The Chennai bench of the National Company Law Tribunal (NCLT) has approved the resolution plan submitted by US-based investor Ingen Capital Group LLC for Chennai-based pharmaceutical manufacturer Orchid Pharma Ltd, following which the management will be constituted under the control of the new investor. Orchid's lenders may take a haircut and would receive around Rs 10 billion out of the total Rs 32 billion outstanding, according to sources close to the development.

The company today informed the exchanges that the resolution plan by Ingen Capital Group was approved by the NCLT on September 17 under the Insolvency and Bankruptcy Code, 2016.

Ingen